Amkor Tech Target Of 4 SHareholder Lawsuits
DOW JONES NEWSWIRES
January 24, 2006 12:57 p.m.
PHILADELPHIA -- A string of four lawsuits seeking class action status were filed against Amkor Technology Inc. (AMKR) for allegedly issuing "materially false and misleading statements regarding the company's increasing financial performance" between Oct. 27, 2003 and July 1, 2004.
An Amkor spokesman wasn't immediately available for comment.
According to one of the lawsuits, Amkor allegedly stuffed its customers with inventory far in excess of demand for the products, experienced "rapidly rising" material costs in excess of the budget, and stuffed distribution channels prior to its note offering to inflate operating results.
The lawsuit claims on Oct. 27, 2003, Amkor said it returned to profitability. On April 27, 2004, the company said it was "experiencing weakness for its cell phone products" and the stock fell on heavy volume.
On July 1, 2004, Amkor said it wouldn't meet its net income guidance for the 2004 second quarter and the stock fell.
On August 22, 2005, the company said the Securities and Exchange Commission issued a formal order of investigation concerning Amkor securities trading, "relating to transactions by certain individuals, including certain insiders or former insiders and persons associated with them."
One of the lawsuits names Chief Executive James J. Kim, Chief Financial Officer Kenneth T. Joyce, President and Chief Operating Officer John N. Boruch, and former President and Operating Chief Bruce Freyman.
Amkor shares were recently up 12 cents, or 2.3%, at $5.23. |
