IMP INC. (IMPX) CHEAT THEIR INVESTORS!!!!!!!
IMPX AND THEIR FOUL BUSINESS PRACTICES AS DESCRIBED BELOW
MAY BE THE RECENT CAUSE OF IOMEGA RECENTLY CANCELLING
ORDERS FROM IMPX AND THE SHARP DROP OF THEIR STOCK PRICE.
JUST OF THE WIRE.....
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Class Action Suit Filed Against IMP, Inc. and Its Officers and Directors
Alleging
Misrepresentations and Insider Trading
13:03 Oct 02, 1996
SAN DIEGO--(BUSINESS WIRE)--Oct. 2, 1996--A class action has been
commenced in the United States District Court
for the Northern District of California by plaintiffs Trevor Roberts,
Steve Leonhardt, Robert Caldwell, Jared J. Genter, Peter
E. Hessian, Jerry Roberts, Jeff Lee, Brent Berti, Ronald Di Maio, Alan
Friedman and Terry J. Vance on behalf of purchasers
of IMP, Inc. ("IMP") common stock during the period April 24, 1996 to
July 22, 1996.
The complaint charges IMP and certain of its officers and directors with
violations of the federal securities laws. IMP is a
supplier of analog and mixed signal CMOS integrated circuit solutions.
Defendants' positive statements, primarily about the strong demand for
and growing backlog of IMP's products, which would
lead to strong earnings per share growth in Fiscal 1997, drove IMP's
stock from less than $7 per share near the beginning of
the Class Period to a Class Period high of $23-1/2 per share in early
May 1996.
This enabled eight of IMP's insiders to sell 1,196,200 shares of their
IMP stock at artificially inflated prices as high as $22.31
per share between May 3, 1996 and May 24, 1996, pocketing over $23.7
million for themselves -- with most of IMP's
insiders selling large portions of their holdings of IMP stock,
immediately after exercising stock options to acquire the shares at
just $.81-$2.25 per share -- thus obtaining large, risk-free profits
from insider trading.
However, shortly after IMP's insiders had completed their stock sales,
it was exposed that poor sales of IMP's products, due
to weak demand, would result in IMP suffering declining revenues and
earnings, requiring the Company to restructure and fire
over 10% of its employees, causing its stock to collapse back below $7
per share. Then in September 1996 IMP revealed it
would suffer a "very significant loss" due to order delays and
reductions and "inventory write offs" and that it was laying off an
additional 23% of its work force and its stock collapsed to $4 per
share.
Plaintiffs who have sued seek to recover damages on behalf of all
purchasers of IMP common stock during the Class Period
(the "Class"). They are represented by several law firms, including
Milberg Weiss Bershad Hynes & Lerach LLP, Bernstein
Litowitz Berger & Grossmann LLP and Spector & Roseman, P.C., which firms
each have collective expertise of over 40 years
in prosecuting investor class actions and extensive experience in
actions involving financial fraud.
Milberg Weiss has offices in New York, San Diego, San Francisco and Los
Angeles and is active in major litigations pending
in federal and state courts throughout the United States. Each law
firm's reputation for excellence has been recognized on
repeated occasions by courts which have appointed the firm to major
positions in complex multi-district or consolidated
litigations. Milberg Weiss has additionally taken a lead role in
numerous important actions on behalf of defrauded investors, and
has been responsible for a number of outstanding recoveries which, in
the aggregate, total approximately $2 billion.
If you are a member of the Class described above, you may, no later than
60 days from today, 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.
If you wish to discuss this action or have any questions concerning this
notice or your rights or interests, please contact
plaintiffs' counsel, William Lerach or Katherine L. Blanck of Milberg
Weiss at 800/348-6192 or Vincent R. Cappucci, a
partner in Bernstein Litowitz Berger & Grossmann LLP at 800/914-4722 or
by Bloomberg E-mail to Mr. Cappucci or Ellen
Gusikoff Stewart of Spector & Roseman at 619/338-4514. (See also:
businesswire.com)
Copyright 1996, Business Wire |
