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Scott+Scott, LLP Files Securities Class Action Lawsuit Against FormFactor, Inc.

This Site:en.yinlu.net Source:en.yinlu.net Writer: Time:2007-11-22
COLCHESTER, Conn., Nov. 21, 2007 (PRIME NEWSWIRE) -- OnNovember 20, 2007, Scott+Scott, LLP, filed a class actionagainst FormFactor, Inc. (``FormFactor'' or the ``Company'')(NasdaqGS: - ) and certain officers and directors in theU.S. District Court for the Northern District of California.The action is on behalf of FormFactor common stock purchasersduring the period April 26, 2006, through October 24, 2007,inclusive (the ``Class Period''), for violations of the SecuritiesExchange Act of 1934. The complaint alleges that defendantsmade false and misleading statements and material omissionsregarding the Company's business and operations and that,as a result, the price of the Company's securities was inflatedduring the Class Period, thereby harming investors.

If you purchased FormFactor stock during the Class Periodand wish to serve as a lead plaintiff in the action, youmust move the Court no later than December 31, 2007. Anymember of the investor class may move the Court to serveas lead plaintiff through counsel of their choice, or maychoose to do nothing and remain an absent class member.If you wish to discuss this action or have questions concerningthis notice or your rights, please contact Scott+Scott (,800/404-7770, 860/537-5537) or visit the Scott+Scott website,, for more information. Thereis no cost or fee to you.

FormFactor, Inc. develops and markets advanced wafer probecards used by semiconductor manufacturers to electricallytest integrated circuits (``ICs''). The Company claims thatits wafer sort, burn-in and device performance testing productsare used by semiconductor manufacturers to cost-effectivelyperform IC testing upstream at the wafer level. The complaintalleges that, during the Class Period, defendants issuedfalse and misleading statements and financial reports thatviolated generally accepted accounting principles (``GAAP'').As a result, vital accounting and other information wasconcealed, including a true accounting for the Company'sobsolete inventory and serious production constraints. Itis also alleged that the production constraints would likelyplace a ceiling on the Company's future revenue opportunity,as a result of any inability to recoup costs and expensesor loss of customers.

On October 24, 2007, after the close of the markets, theCompany issued a shocking press release regarding its suddenplans to undertake an ``internal review of its inventoryvaluation practices.'' As a result of the shocking news,on October 25, 2007, the price of FormFactor stock plungedmore than 17.8% or $7.70 per share to close at $35.54 pershare on heavy volume of 8.3 million shares.

The plaintiff is represented by Scott+Scott, LLP, a lawfirmwith significant experience in prosecuting investor classactions. Please visit our website at for current information on the litigation of major securities,antitrust, employment and employee retirement plan actionsthroughout the United States. The firm represents pensionfunds, charities, foundations, individuals and other entitiesworldwide.

More information on this and other class actions can befound on the Class Action Newsline at

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