Cohen, Milstein, Hausfeld & Toll Files Class Action Securities Fraud Suit on Behalf of Investors Who Purchased Cree, Inc., Securities.Business Editors WASHINGTON--(BUSINESS WIRE)--July 25, 2003 Please take notice that an investor represented 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. (www.cmht.com) filed a securities fraud 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 in the United States District Court United States District Court In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. for the Middle District of North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , on behalf of persons who purchased or otherwise acquired the securities of Cree, Inc. ("Cree" or the "Company") (Nasdaq:CREE) during the period from July 24, 2001 through June 13, 2003 (the "Class Period"). The suit names Cree as a defendant, along with Charles Swoboda, Cree's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. ; Cynthia Merrell, Cree's CFO See Chief Financial Officer. and Chief Accounting Officer; and F. Neal Hunter, Chairman of the Board of Directors. The complaint asserts securities fraud claims under sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. thereunder. The complaint alleges that Cree issued a series of materially false and misleading statements in press releases and SEC reports, thereby inflating its results and stock price during the Class Period. In particular, Cree issued press releases announcing results for its fiscal fourth quarter 2001, fiscal year 2002, and first three fiscal quarters of 2003 and filed financial reports with the SEC reporting on its results during such quarters. These press releases and SEC filings were materially false and misleading when made because they failed to disclose that: (1) a material portion of the Company's revenues were generated from sales that were not at "arms length," but rather were with related entities and therefore did not reflect the true demand for Cree's products; (2) Cree failed to implement and maintain an adequate internal accounting control system; (3) since 2002, Eric Hunter, the Company's former President, CEO and Chairman had warned the Company's board of directors that Cree was improperly accounting for transactions with related entities and was issuing and filing materially false and misleading press releases and financial reports; and (4) a material portion of Cree's reported sales were improperly recognized and reported in the Company's financial statements in violation of 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 during the Class Period. The market first became aware of Cree's improper revenue recognition practices on June 13, 2003, when Cree announced that Eric Hunter had filed a private action accusing the Company of violating the federal securities laws. In response to this news, the price of Cree common stock fell 18.5% in one day, from $22.21 per share on June 12, 2003 to $18.10 per share on June 13, 2003. A copy of the complaint can be obtained from the clerk's office of the court or from Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Any member of the purported pur·port·ed adj. Assumed to be such; supposed: the purported author of the story. pur·port  ed·ly adv. class may move the court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent class member. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as Lead Plaintiff. To be a member of the class, you need not take any action at this time. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant experience in prosecuting investor class actions and actions involving securities 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, and is active in major 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. pending in federal and state courts throughout the nation. You may visit the firm's website at www.cmht.com. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. 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. If you are a member of the Class, you may request to serve as a lead plaintiff. The deadline for making such a request is August 18, 2003. If you have questions with regard to this case, your rights or serving as a lead plaintiff, you may contact one of the following: Steven J. Toll, Esq. (stoll@cmht.com) or Lisa Polk (lpolk@cmht.com) Telephone: 888/240-0775 or 202/408-4600 Cohen, Milstein, Hausfeld & Toll, P.L.L.C. 1100 New York Avenue The following roads are named New York Avenue:
West Tower, Suite 500 Washington, DC 20005 |
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