Spector, Roseman & Kodroff, P.C. Announces the Filing of a Class Action Suit Against Merix Corporation and Certain of Its Office
July 07 2004 - 12:49PM
PR Newswire (US)
Spector, Roseman & Kodroff, P.C. Announces the Filing of a
Class Action Suit Against Merix Corporation and Certain of Its
Officers and Directors on Behalf of Investors PHILADELPHIA, July 7
/PRNewswire/ -- The law firm of Spector, Roseman & Kodroff,
P.C. announces that a class action lawsuit was commenced in the
United States District Court for the District of Oregon, on behalf
of purchasers of the securities of Merix Corporation ("Merix" or
the "Company") (NASDAQ:MERX) between July 1, 2003 through May 13,
2004, inclusive (the "Class Period"). The Complaint alleges that
defendants violated the federal securities laws by misrepresenting
during the Class Period that Merix was well-positioned for
continued growth and profitability and that its business was
growing at a faster pace than its competitors. However, the
defendants knew, or recklessly disregarded, that actual demand for
the Company's high-end services was declining and demand for its
products was driven by inventory build-up by its customers, who
would meet end-user demand by selling off the inventory, thereby
cutting into new sales for Merix. As a result of Defendants'
failure to disclose these highly material facts about Merix's
business, the Company's stock was artificially inflated during
which time Merix insiders, including defendants Hollinger and
Brown, personally sold a total of 162,138 shares for total proceeds
of $3,398,478. On May 13, 2004, after the close of trading, Merix
issued a press release announcing that instead of earning a profit
of between $0.19 and $0.22 per share for its fourth quarter of
2004, as the Company had previously stated it expected to earn, it
now expected to report a loss of $0.03 to $0.06 per share. In
response to this announcement, the price of Merix common stock
dropped from a closing price of $15.32 per share on May 13, 2004 to
$10.68 per share on May 14, a one-day drop of over 30% on unusually
heavy trading volume. If you purchased Merix securities during the
Class Period, you may, no later than August 16, 2004, move to be
appointed as a Lead Plaintiff in this class action. A Lead
Plaintiff is a representative, chosen by the Court, that acts on
behalf of other class members in directing the litigation. The
Private Securities Litigation Reform Act of 1995 directs Courts to
assume that the class member(s) with the "largest financial
interest" in the outcome of the case will best serve the class in
this capacity. Courts have discretion in determining which class
member(s) have the "largest financial interest," and have appointed
Lead Plaintiffs with substantial losses in both absolute terms and
as a percentage of their net worth. If you have sustained
substantial losses in Merix securities during the Class Period,
please contact Spector, Roseman & Kodroff, P.C. at for a more
thorough explanation of the Lead Plaintiff selection process. If
you have relatively small losses, your ability to participate in
any recovery will be protected by the Lead Plaintiff(s), and you
need take no affirmative steps at this time. If you wish to join
this action, please visit
http://www.srk-law.com/dbjoinaclassaction.asp. If you wish to
discuss this action or have any questions concerning this notice or
your rights or interests, please contact plaintiff's counsel Robert
M. Roseman toll-free at 888-844-5862 or via e-mail at . For more
detailed information about the firm please visit its website at
http://www.srk-law.com/. Spector, Roseman & Kodroff, P.C.,
located in Philadelphia, Pennsylvania, concentrates its practice in
complex litigation including actions dealing with securities laws,
antitrust, contract and commercial claims. The firm 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 which have appointed the
firm as lead counsel in numerous major class actions involving
violations of the federal securities laws and the federal antitrust
laws, and consumer fraud. As a result of the efforts of the firm,
and its members, hundreds of millions of dollars have been
recovered on behalf of thousands of defrauded shareholders and
companies. DATASOURCE: Spector, Roseman & Kodroff, P.C.
CONTACT: Robert M. Roseman, Spector, Roseman & Kodroff,
+1-888-844-5862 Web site: http://www.srk-law.com/
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