Spector & Roseman, P.C. Announces Class Action Suit Filed Against S3 And Its Officers and
Directors Alleging Fraud and Insider Trading
PR Newswire, Friday, November 07, 1997 at 18:13
PHILADELPHIA, Nov. 7 /PRNewswire/ -- A securities class action has been
commenced in the United States District Court for the Northern District of
California on behalf of those who purchased S3, Inc. (NASDAQ:SIII) ("S3")
common stock during the period July 15, 1996, to November 3, 1997 ("Class
Period").
The complaint alleges that during the Class Period, S3 and its senior
executives violated Sections 10(b) and 20(a) of the Securities Exchange Act of
1934 by issuing materially false and misleading statements about S3's
operations, customers, and future prospects. The complaint charges defendants
with concealing the fact that S3 had improperly recognized sales to several
international distributors. Thus, on November 3, 1997, the Company announced
that as a result of the improper revenue recognition, it expected to restate
its revenues downward for "prior quarters" by a commutative total of between
$40 million and $70 million and expects the resulting net income effect for
those quarters to be a commutative decrease of 14 cents to 29 cents per share.
As a consequence of defendants' improper accounting, S3's financial statements
for these "prior quarters" were false and presented in violation of Generally
Accepted Accounting Principles.
The complaint alleges that the defendants' false statements artificially
inflated the price of S3 stock which enabled S3 insiders to sell millions of
dollars worth of their own S3 stock at inflated levels before the defendants
revealed the revenue recognition. Following these disclosures, the price of
S3 stock fell to $7-11/32 per share from a Class Period high of $23 per share.
The plaintiff seeks to recover damages on behalf of all purchasers of S3
common stock during the Class Period (the "Class"). He is represented by the
law firm, Spector & Roseman, P.C., who have expertise in prosecuting investor
class actions and extensive experience in actions involving financial fraud.
Spector & Roseman, P.C., located in Philadelphia, Pennsylvania, and San
Diego, California, concentrates its practice in complex litigation including
actions dealing with securities laws, antitrust, contract and commercial
claims. The firm, which has been appointed lead counsel in numerous major
class actions, concentrates particularly in securities litigation, primarily
representing shareholders in both class and derivative actions, and primarily
representing plaintiffs in antitrust litigation. As a result of the efforts
of the firm, and its members, hundreds of millions of dollars have been
recovered on behalf of thousands of defrauded shareholders and companies.
If you are a member of the Class described above, you may, no later than
60 days from today, 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. If you wish to discuss this action or have any
questions concerning this notice or your rights or interests, please contact
plaintiff's counsel, Robert M. Roseman at Spector & Roseman, collect at
215-864-2400 or via e-mail at spro@voicenet.com
SOURCE Spector & Roseman, P.C.
-0- 11/07/97
/CONTACT: Robert M. Roseman of Spector & Roseman, P.C., 215-864-2400, or
spro@voicenet.com, or Ellen Gusikoff Stewart, 619-338-4514/ |
