Class Action Suit Filed Against Raster Graphics Inc. and Its Officers and Directors Alleging Misrepresentations, False Financial Statements and Insider Trading.SAN DIEGO--(BUSINESS WIRE)--April 9, 1998--On March 4, 1998, Milberg Weiss Founded in 1965 by attorneys Larry Milberg and Melvyn I. Weiss, Milberg Weiss (formerly known as Milberg Weiss & Bershad LLP) is a U.S. plaintiffs' law firm. Based in New York City, it is widely known for representing investors in securities class actions. Bershad Hynes & Lerach LLP LLP - Lower Layer Protocol ("Milberg Weiss") filed a class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax against Raster Graphics See bitmapped graphics. (graphics) raster graphics - Computer graphics in which an image is composed of an array of pixels arranged in rows and columns. Opposite: vector graphics. , Inc. ("Raster Graphics" or the "Company") and certain of its officers and/or directors, alleging violations of the California Corporations, Civil and Business & Professions Codes in connection with their reporting of the Company's financial results and providing information about the Company's products, including its Piezo "Piezo", derived from the Greek piezein, which means to squeeze or press, is a prefix used in:
The class action was filed in the Superior Court of the State of California, County of Santa Clara Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , on behalf of all purchasers of the common stock of Raster Graphics during the period April 24, 1997 through February 3, 1998, inclusive (the "Class Period"). On February 3, 1998, Raster Graphics announced that it would restate its financial results for the third quarter of 1997 and that it would report, for the fourth quarter of 1997, a pre-tax loss of between $3.2 and $3.7 million. Thereafter on February 26, 1998, the Company announced its fourth quarter and year ended December 31, 1997 results. For the fourth quarter, the Company reported a net loss of $3.85 million as compared to net income of $993,000 for the fourth quarter of 1996. For the full year off 1997, Raster Graphics reported revenues of $54.7 million and a loss of $1.17 million compared to net income of $3.1 million for 1996. On April 3, 1998, Raster Graphics announced an additional, broader restatement of its financial results. On April 3, 1998, the Company stated that it would restate its 1997 year-end results and that it expected to post a loss "substantially in excess" of the originally reported loss of $1.2 million, or 12 cents a share, for the year ended December 31, 1997. In a press release on Saturday, April 4, 1998, Raster Graphics said the restatement was due to the impact of decreased revenue on gross margins and increases in various reserve accounts. The Company said that in February 1998, Remo Canessa joined Raster Graphics as Vice President Finance and Chief Financial Officer. In the course of his review of the Company's 1997 financial records, Mr. Canessa determined that a number of transactions did not meet the Company's pre-existing revenue recognition policies. The Company said it expects revenues to decline by $4 million to $5 million from the $54.7 million it had originally reported for the 1997 year. Additionally, Raster Graphics did not file its Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for 1997 on March 31, 1998 but said that it expected to file it on or about April 15. As a result of these new developments, Milberg Weiss is considering amending the action to extend the Class Period and include additional purchasers of Raster Graphics' common stock, possibly up through April 3, 1998. Milberg Weiss is a 120-lawyer firm that has been actively engaged in commercial litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , emphasizing securities and antitrust class actions, for more than 20 years. The firm has offices in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden and Los Angeles and is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts that have appointed the firm to major positions in complex multi-district or consolidated litigations. Milberg Weiss has taken a lead role in numerous important actions on behalf of defrauded investors and has been responsible for a number of outstanding recoveries, which, in the aggregate, total approximately $2 billion. For more detailed information about the firm, you may visit our website at http://www.milberg.com. If you wish to discuss this case or have any questions concerning this case or your rights or interests, please contact William S. Lerach, Alan Schulman or Darren J. Robbins of Milberg Weiss/California at 800/449-4900 or via e-mail at wsl@mwbhl.com. CONTACT: Milberg Weiss Bershad Hynes & Lerach LLP William S. Lerach, Alan Schulman or Darren J. Robbins 800/449-4900 wsl@mwbhl.com |
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