To all willing to know:
NEW YORK and SAN FRANCISCO--(BUSINESS WIRE)--July 15, 1996--A class
action has been commenced in the United States District Court for the
Southern District of New York by plaintiff Joseph C. Barton on
behalf of himself and on behalf of purchasers of Presstek Inc.
("Presstek") common stock during the period March 1, 1996, through
June 18, 1996 (the "Class Period").
The complaint alleges that Presstek and certain of its officers
and directors, including Robert and Lawrence Howard -- two of
Presstek's founders and directors -- along with Cabot Market Letter
("Cabot"), Cabot Money Management, Cabot Heritage Corp., and Cabot's
president Carlton Lutts, violated the Securities and Exchange Act of
1934 by engaging in a fraudulent scheme whereby they made false and
misleading statements to the investing public regarding Presstek's
financial condition, its business, and the status of a Securities
and Exchange Commission ("SEC") investigation. The complaint
alleges that the purpose of defendants' fraudulent scheme was to
artificially inflate the price of Presstek common stock during the
Class Period.
The complaint, filed by the law firms of Gold Bennett & Cera LLP
of San Francisco and Rabin & Garland of New York City, alleges that
defendants participated in a scheme to artificially inflate
Presstek's common stock price in order to allow the Presstek officer
and director defendants to sell over 202,000 shares of their
Presstek common stock and to enable Cabot to inflate and manipulate
the price of the stock for Cabot and its affiliates' own financial
gain. The complaint alleges that, as a result of their trading on
material, non-public information, the Presstek officer and director
defendants received gross proceeds of over $29 million. Of that
amount, the complaint alleges that defendants Robert and Lawrence
Howard received gross proceeds of over $23 million. On June 5, 1996
when the SEC's investigation of Cabot's relationship with Presstek
was disclosed, Presstek's common stock price dropped to $109.00 per
share. The stock fell to $56 on June 18, 1996 when Presstek
restated its income for the first quarter of fiscal year 1996.
During the Class Period, Presstek's common stock price traded as
high as $200 per share.
The firms of Gold Bennett & Cera LLP and Rabin & Garland have
broad experience in representing defrauded investors in shareholder
class actions. Gold Bennett & Cera LLP has engaged in commercial
litigation, and, in particular, shareholder and consumer class
actions, for over 20 years. The firm, located in San Francisco, is
presently involved in shareholder and consumer class actions in
federal and state courts throughout the United States. Rabin &
Garland, a New York law firm, and its predecessor firms, has devoted
its practice to shareholder class actions for more than 30 years.
Both Gold Bennett & Cera LLP and Rabin & Garland have recovered
hundreds of millions of dollars for shareholders and consumers in
class actions throughout the United States.
If you are a member of the class described above, you may, not
later than 60 days from the date of this announcement, 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. The action filed on July 10, 1996 is entitled
Barton v. Presstek, Inc. et al., Case No. 96-CIV-5172 (BSJ).
If you wish to discuss this action or have any questions
concerning this announcement or your rights or interests, contact
plaintiff's counsel, Paul F. Bennett or Susan D. Resley of Gold
Bennett & Cera LLP, 595 Market Street, Suite 2300, San Francisco,
Calif. 94105-2835, by telephone at 800/778-1822 or 415/777-2230, by
facsimile at 415/777-5189 or by e-mail at <a href="mailto:gbc_law@ix.netcom.com">gbc_law@ix.netcom.com</a> or
I. Stephen Rabin of Rabin & Garland, 275 Madison Avenue, New York,
New York 10016 or 212/682-1818, by facsimile at 212/682-1892, by
e-mail at <a href="mailto:rabinlaw@ix.netcom.com">rabinlaw@ix.netcom.com</a>, or by Bloomberg e-mail.
CONTACT: Gold Bennett & Cera LLP, San Francisco
Paul F. Bennett/Susan D. Resley
800/778-1822 or 415/777-2230
or
Rabin & Garland, New York
I. Stephen Rabin, 212/682-1818 |
