Suit Filed Against Cree
RALEIGH, N.C., June 13 /PRNewswire/ -- Unti & Lumsden LLC today issued the following in regards to Eric Hunter and Jocelyn Hunter v. Cree, Inc.:
Eric Hunter, one of the founders of Cree, Inc. (Nasdaq: CREE), yesterday filed a securities lawsuit in U.S. District Court in Greensboro, North Carolina, against Cree and its current Chairman, F. Neal Hunter. The lawsuit alleges, among other things, that beginning in 1995 Cree and F. Neal Hunter filed false and misleading statements with the Securities and Exchange Commission relating to public stock offerings, omitted material facts from earnings statements, and misled auditors concerning income paid to officers and directors. The Complaint also alleges that F. Neal Hunter and his brother, Jeff Hunter, then Chairman of an affiliated company, C3 (now Charles & Colvard, Ltd.), entered into an undisclosed side agreement in connection with a requirements contract, which required C3 to accept unlimited shipments of silicon carbide crystals for the manufacture of moissanite gems, thereby artificially increasing Cree's operating income and the per share value of its stock. The Complaint goes on to allege that Cree's Chairman and other officials have made personal threats against the Plaintiffs and other family members, in an effort to prevent reporting of securities violations to the Securities & Exchange Commission.
Eric Hunter wrote and obtained ten or more of the key patents used by Cree, which he assigned to the company in 1999 in exchange for stock options and employment. The lawsuit also seeks protection and remedies under the Sarbanes-Oxley Act of 2002, which was enacted to protect corporate "whistle- blowers" who report securities violations and other criminal conduct from adverse actions by employers. |
