[Class Action Lawsuit Against ACTM Dismissed. Appeal Denied.]
Thursday May 25, 12:56 pm Eastern Time
Company Press Release
SOURCE: ACT Manufacturing, Inc.
U.S. Appeals Court Upholds Dismissal of Class Action Lawsuit
Against ACT Manufacturing, Inc.
HUDSON, Mass., May 25 /PRNewswire/ -- ACT Manufacturing, Inc.
(Nasdaq: ACTM - news) today announced that the United States
Court of Appeals for the First Circuit has upheld the
dismissal of a securities class action litigation that had
been filed against the Company and certain of its officers.
The securities class action litigation was filed against ACT
in February 1998 and alleged that ACT had made misstatements
to the investing public regarding the Company's financial
performance.
In May 1999 the United States District Court in Boston
granted ACT's motion to dismiss the litigation in its
entirety, and denied plaintiffs' request to file a new
complaint. Plaintiffs then appealed to the Court of Appeals.
On May 5, 2000 the Court of Appeals issued its decision
denying the appeal, ruling that ``the lower court handled the
matter appropriately in all respects.''
John A. Pino, President and Chief Executive Officer of ACT,
said, ``While it is unfortunate that ACT was required to
devote management time and resources to defending this
opportunistic litigation, all of us at ACT are obviously very
happy with the decision of the Court of Appeals.''
The Boston law firm of Testa, Hurwitz & Thibeault, LLP
represented ACT in the litigation.
ACT Manufacturing, Inc., headquartered in Hudson,
Massachusetts, provides value-added electronic manufacturing
services for original equipment manufacturers in the
networking and telecommunications, computer, and industrial
and medical equipment markets. The Company provides OEMs with
complex printed circuit board assembly primarily utilizing
advanced surface mount technology, mechanical and molded
cable and harness assembly, electromechanical subassembly,
and total system assembly and integration. The Company has
operations in California, Georgia, Massachusetts,
Mississippi, Mexico and Ireland.
ACT Manufacturing, Inc., headquartered in Hudson,
Massachusetts, provides value-added electronics manufacturing
services for original equipment manufacturers in the
networking and telecommunications, computer and industrial
and medical equipment markets. The Company provides OEMs with
complex printed circuit board assembly primarily utilizing
advanced surface mount technology, mechanical and molded
cable and harness assembly, electro-mechanical subassembly,
and total system assembly and integration. The Company has
operations in Hudson, Mass.; Mansfield, Mass.; Marlboro,
Mass.; Lawrenceville, Ga.; Corinth, Miss.; Santa Clara,
Calif.; Huntsville, Ala.; Dublin, Ireland; Hermosillo,
Mexico; and Taipei, Taiwan.
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act
of 1995 that are subject to risks and uncertainties that
could cause actual results to differ materially from those
anticipated, including statements concerning the effects of
the GSS Array acquisition, expected financial and operating
results, synergies, growth of the customer base, revenue and
shareholder value, future customer shipments, and the plans
and objectives of management. Those risks and uncertainties
include, among others: the inability to close the GSS
Array acquisition in a timely fashion; the inability to
obtain approval of GSS Array's stockholders or delist the
shares of GSS Array from the Stock Exchange of Thailand; the
inability to successfully tender for all of the GSS Array
shares and options; the inability to obtain governmental
approvals for the GSS Array acquisition; the risk of not
integrating the GSS Array business successfully; the
inability to achieve expected synergies; costs associated
with the GSS Array acquisition; the Company's ability to
expand its customer base and grow its operations through
acquisition or otherwise; the effectiveness of managing
manufacturing and materials procurement processes; the
effects of future acquisitions on the Company's operations,
financial results and shareholder value; the Company's
dependence on major customers; increased competition and its
effects on pricing, revenues, gross margins and the customer
base; future customer demand; the Company's ability to timely
complete, configure and ship products; the timely
availability of components; the Company's increased
international operations; demand for our customers' products;
and changes, reductions, delays or cancellations of customer
orders. In addition, ACT's business and results of operations
are subject to numerous additional risks and uncertainties,
including the short-term nature of customer orders,
customers' announcements and introduction of new products or
new generations of products, evolutions in the life cycles of
customers' products, inventory obsolescence, interest rate
and currency exchange rate movements, trends in the
electronics industry and changes or anticipated changes in
economic conditions. For a more detailed discussion of the
risks and uncertainties of ACT's business, please refer to
the Company's periodic reports and registration statements
filed with the Securities and Exchange Commission, including
the Company's Annual Report on Form 10-K for the period ended
December 31, 1999.
SOURCE: ACT Manufacturing, Inc. |
