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Technology Stocks : Adaptec (ADPT) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Switz who wrote (932)	1/22/1998 2:05:00 PM
From: Monique C. Cushman	Read Replies (1) \| Respond to of 5944

Thursday January 22, 12:22 pm Eastern Time Adaptec faces shareholder suit -attorneys NEW YORK, Jan 22 (Reuters) - Shareholders are suing Adaptec Inc and several of its officers and directors for allegedly inflating the company's stock price through improper accounting practices, attorneys for the plaintiffs said. Attorneys from the New York law firm Wolf Popper LLP said in a statement that Adaptec's accounting practices allowed company ''insiders to sell stock at the artificially high prices before the company announced late last year that it expected a revenue shortfall. The statement, issused Thursday, said the suit alleges that Adaptec improperly recognized revenue on shipments of products distributors agreed could be returned if unsold. They also alleged that Adaptec failed to take required write-offs of accounts receivable necessary for a fair presentation of its operating results. An Adaptec spokesperson did not immediately return a call seeking comment on the suit, which was filed in U.S. District Court of the Northern District of California. Attorneys said they are seeking class action status on behalf of those who purchased the company's stock between April 29, 1997, and January 8, 1998. The attorneys said Adaptec stock traded as high as $54.25 per share. They said Adaptec ''insiders'' named as defendants garnered about $31 million by selling more than 750,000 shares at prices as high as $50.44 per share, before the company said on January 8 that it would see a revenue shortfall for its third quarter ended December 31, 1997. After that announcement, Adaptec common stock fell to as low as $20 per share, they said. Adaptec stock was trading at 22-3/4 around midday Thursday, down 1-5/8 from Wednesday's close. . More Quotes and News: Adaptec Inc (Nasdaq:ADPT - news) Related News Categories: computer peripheral, computers