Here come the lawyers:
W1178 JAN 22,1998 6:46 PACIFIC 09:46 EASTERN
( BW)(WOLF-POPPER/ADAPTEC)
Wolf Popper LLP Files Securities Fraud
Class Action Against Adaptec, Inc.
Business Editors
NEW YORK--(BUSINESS WIRE)--Jan. 22, 1998--On January 21, 1998, a securities fraud class action was filed in the United States District Court for the Northern District of California against Adaptec, Inc. ("Adaptec" or the "Company") (NASDAQ:ADPT) and certain of its officers and directors. The class action was filed on behalf of all persons who purchased the common stock of Adaptec during the period April 29, 1997 through January 8, 1998 (the "Class Period"), to recover damages caused by defendants' violations of the federal securities laws.
The Complaint alleges that throughout the Class Period, Adaptec exceeded analysts' earnings estimates and was able to report consistent quarter to quarter earnings growth by improperly recognizing revenue on shipments of products that Adaptec had agreed with its distributors could be returned if unsold. The Complaint further alleges that Adaptec failed to take required write-offs of accounts receivable necessary for a fair presentation of its operating results. As a result of defendants' false statements, Adaptec stock traded as high as $54.25 per share during the Class Period.
On January 8, 1998 Adaptec revealed that it would suffer a huge revenue shortfall for its third quarter ended December 31, 1997. On this announcement, Adaptec common stock fell by almost $16 per share to as low as $20 per share. The Complaint alleges that the third quarter shortfall was the direct result of Adaptec's earlier shipments that were improperly recognized as revenue, which caused increased returns from its distributors and cancellations and deferrals of future orders.
During the Class Period, Adaptec insiders, who are named as defendants in the Complaint, unloaded in excess of 750,000 shares of their Adaptec common stock at prices as high as $50.44 per share, for unlawful proceeds of approximately $31 million.
Plaintiffs are represented in this action by Wolf Popper LLP of New York City. Wolf Popper has extensive experience representing shareholders in class actions and has successfully recovered billions of dollars for defrauded investors and shareholders. Its reputation and expertise in shareholder and other class action litigation has been repeatedly recognized by the courts, which have appointed the firm to major positions in complex multi-district and consolidated litigations.
Any member of the proposed class who desires to be appointed lead plaintiff in this action must file a motion with the court by March 23, 1998. Class members must meet certain legal requirements to serve as a lead plaintiff. If you have questions or information, or if you are interested in serving as a lead plaintiff in this action, you may call or write:
Patricia A. Avery, Esq. or Robert C. Finkel, Esq. Wolf Popper LLP 845 Third Avenue New York, NY 10022-6689 Telephone:212/759-4600 Facsimile:212/486-2093 E-mail: wolfpopper@aol.com
Website: http:\\www.wolfpopper.com
--30--kam/ny*
CONTACT: Wolf Popper LLP, New York
Robert C. Finkel, Esq. 212/451-9620
KEYWORD: NEW YORK
INDUSTRY KEYWORD: BANKING |
