You knew it was coming...
Shareholders File Suit Against Electronics For Imaging (EFII)
and Certain Officers and Directors Alleging Misrepresentations
and Insider Trading
PR Newswire - December 16, 1997 14:21
EFII %CPR V%PRN P%PRN
PHILADELPHIA, Dec. 16 /PRNewswire/ -- Counsel for Class Plaintiffs,
Barrack, Rodos & Bacine, today issued the following:
A class action has been commenced in the California courts on behalf of
purchasers of Electronics For Imaging, Inc. ("EFII" or "Company")
(Nasdaq: EFII) common stock during the period April 10, 1997 through
December 11, 1997 (the "Class Period").
The Complaint charges EFII and certain of its officers and directors with
violations of securities laws for misrepresenting the status and strength of
EFII's business operations and earnings growth. By concealing the true facts
about, inter alia, the enormous build-up of unsold and excess inventory in the
hands of EFII's Japanese OEM customers which represented approximately half of
the Company's quarterly revenue and the delay in development and customer
acceptance of its new products and technology, defendants artificially
inflated EFII's stock price to as high as $56.50 a share during the Class
Period, allowing EFII's top insiders to sell more than $11 million of their
EFII stock at prices as high as $55 per share. On December 11, 1997, EFII
disclosed that its revenues for the fourth quarter of 1997 would decline by
more than 40% from the third quarter and that its earnings were expected to
decline by more than 85% from the third quarter. The Company also announced
that there was an enormous build-up in its inventory among Japanese OEM
customers; there was a delay in new products; the company had lost market
share; and its margins were declining. In response to these announcements,
EFII's stock collapsed 60% in one day and is now trading at approximately $14,
almost 75% lower than when the insiders sold their shares.
Plaintiffs seek to recover damages on behalf of all purchasers of EFII
stock during the Class Period (the "Class"). They are represented by several
law firms, including Barrack, Rodos & Bacine, which has extensive experience
in prosecuting investor class actions involving financial fraud. Barrack,
Rodos & Bacine has prosecuted securities, antitrust and consumer class actions
for over 20 years. The Firm has offices in Philadelphia, San Diego, New York,
Boston and New Jersey and has been designated lead counsel by federal and
state courts across the country in large, complex cases. One Court has
described the firm as "recognized nationally to be a leading and skillful
practitioner in the field of complex class actions." For more information
about Barrack, Rodos & Bacine, please visit their website at WWW.BARRACK.COM.
If you wish to discuss this action or have any questions concerning this
case or your rights or interests, please contact the Shareholder Relations
Manager at Barrack, Rodos & Bacine, 3300 Two Commerce Square, 2001 Market
Street, Philadelphia, PA 19103, at 800-417-7305 or 215-963-0600, fax number
888-417-7306 or 215-963-0838 or by e-mail at BARRACK@ix.netcom.com.
SOURCE Barrack, Rodos & Bacine
/CONTACT: Counsel for Class Plaintiffs, Barrack, Rodos & Bacine,
Shareholder Relations Manager, 800-417-7305 or 215-963-0600, or fax,
888-417-7306 or 215-963-0838, or e-mail, BARRACK@ix.netcom.com/
/Web site: barrack.com
(EFII) |
