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Milberg Weiss Files Class Action Suit Against Cymer Inc. and Its Officers and Directors Alleging Misrepresentations and Insider Trading
Business Wire - September 03, 1998 18:15
SAN DIEGO--(BUSINESS WIRE)--Sept. 3, 1998-- Milberg Weiss today announced that a class action has been commenced in the United States District Court for the Southern District of California on behalf of purchasers of Cymer Inc. ("Cymer") (NASDAQ:CYMI) common stock during the period Apr. 24, 1997 to Sept. 26, 1997 (the "Class Period").
The complaint charges Cymer and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Cymer manufactures lasers utilizing deep ultraviolet ("DUV") technology which are incorporated into stepper machines used to manufacture semiconductor chips.
The complaint alleges that defendants' false and misleading statements about rapid acceptance of DUV technology by semiconductor chip manufacturers, strong demand and orders for Cymer's Series 5000 KrF excimer DUV lasers, its strong backlog of shippable/deliverable orders for these lasers and the lack of technical problems with and defects in its lasers, which would result in 40%-50% EPS growth for Cymer over the next several years and 98 EPS of $1.15-$1.20, artificially inflated Cymer's stock to a Class Period high of $49-1/4 on Aug. 25, 1997.
Cymer, its top insiders and controlling shareholders sold or disposed of 1,869,086 shares of their Cymer stock between April 1997 and August 1997, at as high as $45-1/2, generating $48.5 million in proceeds, while Cymer itself completed a very large $173 million convertible debenture offering in August 1997.
On Sept. 5, 1997, just a few weeks after Cymer's stock hit its all-time high of $49-1/4, and Cymer completed its convertible debenture offering and its top insiders completed their insider selling, Cymer's stock began to drop as rumors circulated and some analysts reported that there were quality problems with Cymer's Series 5000 excimer DUV lasers and that Cymer's customers were pushing out or cancelling earlier orders for Cymer's lasers, which would hurt Cymer's 98-99 results.
While Cymer repeatedly denied that these rumors were true, Cymer stock dropped to $28-1/8 on Sept. 12, 1997 and to $24-7/8 in late September 1997 and to just $16-1/2 in mid-November 1997, as and after Cymer was forced to admit that acceptance of DUV photolithography technology by semiconductor manufacturers was slowing, its Series 5000 lasers were encountering extraordinary reliability and performance problems, demand and orders for its lasers had declined and its 98 revenues and EPS would be much lower than earlier forecast.
Plaintiff seeks to recover damages on behalf of all purchasers of Cymer common stock during the Class Period (the "Class"). The plaintiff is represented by several law firms, including Milberg Weiss Bershad Hynes & Lerach LLP, who have expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Milberg Weiss has been actively engaged in commercial litigation, emphasizing securities and antitrust class actions, for more than 30 years. The firm has offices in New York, San Diego, San Francisco and Los Angeles and is active in major litigation pending in federal and state courts throughout the United States.
The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to major positions in complex multi-district or consolidated litigations.
Milberg Weiss has taken a lead role in numerous important actions on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total approximately $2 billion. Visit the firm's Web site at milberg.com.
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, William Lerach, Alan Schulman or Darren Robbins of Milberg Weiss at 800/449-4900 or via e-mail at wsl@mwbhl.com.
CONTACT: Milberg Weiss Bershad Hynes & Lerach
William Lerach, 800/449-4900
wsl@mwbhl.com
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