Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Announces Class Action Lawsuit Against Solectron.Business Editors/Legal Writers WASHINGTON--(BUSINESS WIRE)--March 28, 2003 The following notice is issued by the law firm of Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. , Milstein, Hausfeld & Toll, P.L.L.C., ("Cohen, Milstein") who filed a lawsuit against Solectron Corporation ("Solectron" or the "Company") and certain of its officers and directors (NYSE NYSE See: New York Stock Exchange :SLR (1) (Scalable Linear Recording) A line of magnetic tape drives from Tandberg Data that evolved from the QIC Data Cartridge format. See QIC. (2) (Single Lens Reflex) A camera that uses the same lens for viewing and shooting. ) in the United States District Court for the Northern District of California The United States District Court for the Northern District of California is the Federal district court whose jurisdiction comprises following counties: Alameda, Contra Costa, Del Norte, Humboldt, Lake, Marin, Mendocino, Monterey, Napa, San Benito, San Francisco, San Mateo, Santa on behalf of all persons who purchased or otherwise acquired the securities of Solectron between September 17, 2001, and September 26, 2002, inclusive (the "Class Period"). The Complaint alleges that defendants issued numerous statements reporting artificially inflated financial results. The Complaint further alleges that these statements were materially false and misleading because they failed to disclose and/or misrepresented several adverse facts, such as that the company possessed tens of millions of dollars of obsolete and unsaleable unsaleable Adjective unable to be sold Adj. 1. unsaleable - impossible to sell unsalable unsaleable, unsalable (US) adj → invendible inventory in its Technology Solutions division which would need to be written down. Solectron's reported financial results were thereby artificially inflated at all times during the Class Period. As a result of the Company's failure to writedown its inventory in a timely manner, the financial statements published by Solectron during the Class Period were not prepared in accordance with Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting and were materially false and misleading. If the Company had properly accounted for its inventory, it would have missed its guidance severely. On September 26, 2002, following the close of the market, Solectron issued a press release announcing its financial results for the fourth quarter of 2002 and fiscal year 2002. The Company further reported a booking of a pre-tax charge of $97 million to reserve for inventory revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. and write-off. Solectron ascribed most of the charge to "inventory risk assumed by Solectron's product-oriented Technology Solutions business unit...." Shares of Solectron common stock dropped from their previous close, following that announcement, as well as other disclosures. If you purchased or acquired Solectron securities during the Class Period, you may, no later than May 5, 2003, move to be appointed as a Lead Plaintiff. Cohen Milstein has significant experience in prosecuting investor class actions and actions involving financial fraud. The firm has offices in Washington, D.C., Seattle, 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 , and Chicago, has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars. You may visit the firm's website at www.cmht.com. If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following: Steven J. Toll, Esq. or Angela Wallis, Cohen, Milstein, Hausfeld & Toll, P.L.L.C. 1100 New York Avenue The following roads are named New York Avenue:
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