Shareholder Class Action Filed Against the Officers and Directors of DDi Corporation by the Law Firm of Schiffrin & Barroway, LLP.
BALA CYNWYD, Pa., Oct. 2 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP LLP - Lower Layer Protocol :
Notice is hereby given that 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 was filed 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 Central District of California on behalf of all purchasers of the common stock of DDi Corporation ("DDi" or the "Company"), (BULLETIN BOARD: DDICQ) from December 19, 2000 through April 29, 2002, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org.
The complaint charges certain of DDi's officers and directors with violations of the Securities Exchange Act of 1934. DDi provides technologically advanced, time-critical electronics engineering, development and manufacturing services to original equipment manufacturers and other providers of electronics manufacturing services Electronic manufacturing services (EMS) is term used for companies that design, test, manufacture, distribute and provide return/repair services for electronic component and assemblies for original equipment manufacturers (OEMs). . The complaint alleges that the true facts which were known by each of the defendants, but concealed from the investing public during the Class Period, were as follows: (a) the Company's financial results were overstated o·ver·state
tr.v. o·ver·stat·ed, o·ver·stat·ing, o·ver·states
To state in exaggerated terms. See Synonyms at exaggerate.
o . Specifically, the Company failed to properly conduct its impairment test of the Company's assets, including goodwill. Moreover, the Company had overstated the value of its inventory; (b) the Company's receivables and projections were grossly overstated as the Company's clients were delaying payment and/or defaulting on their debts to DDi as the technology market continued to deteriorate; (c) the Company's results, which defendants claimed "out performed [their] expectations," were the result of improper accounting, and not as claimed; (d) the Company's clients were not, as defendants suggested, converting their prototypes into preproduction pre·pro·duc·tion
1. Taking place or existing before production: preproduction planning.
2. orders; (e) the Company's Anaheim plant was in disarray, requiring massive restructuring of the facilities and causing the Company to incur massive costs; (f) the Company's Tokyo offices were hemorrhaging cash and were draining the Company's resources; (g) the Company's United Kingdom design centers were essentially creating redundant expenses and were inefficient, causing the Company's valuation of these centers to be overvalued Overvalued
A stock whose current price is not justified by the earnings outlook or price/earnings (P/E) ratio and thus, expected to drop in price. Overvaluation may result from an emotional buying spurt, which inflates the market price of the stock or from a deterioration in a ; (h) the Company was in violation of its financial covenants and had delayed the breakdown of its assets for multiple quarters in order to avoid lenders' and shareholders' knowledge of the Company's violation; (i) the Company's Moorpark, California operations and Texas operations were hemorrhaging millions of dollars quarterly and required that the defendants write down their value by the end of the first quarter 2001 by approximately $10 million; and (j) the Company's post acquisition valuation of its Sanmina acquisition was grossly overvalued.
As a result of the defendants' alleged false statements, DDi's stock price traded at inflated levels during the Class Period, increasing to as high as $35.50 on January 30, 2001, whereby the Company's top officers and directors sold more than $20 million worth of their own shares.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance Corporate Governance
The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/currentcases.cfm.
If you are a member of the class described above, you may, not later than December 1, 2003, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
CONTACT: Schiffrin & Barroway, LLP Marc A. Topaz, Esq. Stuart L. Berman, Esq. Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004 1-888-299-7706 (toll free) or 1-610-667-7706 Or by e-mail at email@example.com
CONTACT: Marc A. Topaz, Esq., or Stuart L. Berman, Esq. of Schiffrin & Barroway, LLP, +1-888-299-7706, or +1-610-667-7706, firstname.lastname@example.org
Web site: http://www.sbclasslaw.com/currentcases.cfm
Web site: http://www.sbclasslaw.com/