Nanophase named in shareholders lawsuit
June 5, 1998 04:07 PM
WHITE PLAINS, N.Y., June 5 (Reuters) - Nanophase Technologies Corp., a manufacturer of advanced engineered materials to various industries, was named in shareholders suit, plaintiffs' attorneys said Friday.
The suit alleges Nanophase inflated its stock price by making false and misleading statements about its business. The suit, which is seeking class action status, was filed in the U.S. District Court for the Northern District of Illinois on behalf of buyers of Nanophase's stock in the period November 26 1997 through January 8 this year.
On January 9, Nanophase said its fourth-quarter sales and profits would fall below expectations in part because of the unfolding economic crisis in Asia. The company's stock nose dived more than 50 percent to close at 6-1/8 the day of the announcement, down from a high of 13 the previous day.
A company spokesman was not immediately available to comment on the suit, which was filed by the law firms of Lowey Dannenberg Bemporad & Selinger and Susman & Watkins.
Nanophase's stock Friday closed at 5-1/4, down 1/16 and close to its yearly low of 5.
((--New York Newsdesk (212) 859-1610, fax (212) 859-1717--)) REUTERS
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