Kaplan, Kilsheimer & Fox LLP Notice of Pendency of Class Action
NEW YORK, Feb. 9 /PRNewswire/ -- The following statement was issued today by Kaplan, Kilsheimer & Fox LLP:
The following Notice is issued by the law firm of Kaplan, Kilsheimer & Fox LLP who has filed a lawsuit in the United States District Court for the District of Utah on behalf of purchasers of Iomega Corporation (''Iomega'') common stock during the period September 22, 1997 to January 22, 1998 (the ''Class Period'').
The complaint charges Iomega and certain of its officers with violations of the federal securities laws. The complaint alleges that prior to the Class Period, the sales growth of the Company's Jaz drives and disks had begun to weaken due to competition. In order to reverse this trend, defendants embarked upon a scheme in which they issued false and misleading representations and omissions regarding, among other things: 1) the release date of the Company's new two gigabyte drive, the Jaz 2; 2) the impact any delay in shipment of the Jaz 2 would have on the Company's fourth quarter financial results; and 3) a new business strategy the Company had embarked upon in late 1997, which included an extremely expensive and potentially risky advertising campaign to boost declining sales.
The complaint also alleges that as a result of defendants' false and misleading representations and omissions, the price of Iomega stock soared during the Class Period. The Individual Defendants, who are the two most senior officers of the Company, took advantage of this dramatic increase by selling more than $11.5 million of their Iomega stock, at near the Class Period high.
Plaintiffs seek to recover damages on behalf of all purchasers of Iomega common stock during the Class Period (the ''Class''). Plaintiffs are represented by several law firms, including Kaplan, Kilsheimer & Fox LLP and Milberg Weiss Bershad Hynes & Lerach LLP, who have expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
If you are a member of the Class, you may move the court, no later than 60 days from today, to serve as lead plaintiff of the Class. In order to serve as lead plaintiff, 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 plaintiffs' counsel, Jonathan K. Levine or Christine M. Comas of Kaplan, Kilsheimer & Fox LLP at 800-290-1952 or 212-687-1980, e-mail address: kkfoxlaw@aol.com; or William Lerach or Darren Robbins of Milberg Weiss at 800-449-4900, e-mail address: wsl@mwbhl.com
SOURCE: Kaplan, Kilsheimer & Fox LLP |
