To: JPM who wrote (29293 ) 2/11/1998 11:30:00 AM From: BillyG Respond to of 50808
Why Sigma is priced at $3/share? Shareholder lawsuit. Ouch, poor Sigma........ Class Action Suit Filed Against Sigma Designs, Inc. and Its Officers and Directors Alleging Misrepresentations, False Financial Statements and Insider Trading SAN DIEGO--(BUSINESS WIRE)--Feb. 11, 1998--A class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of Sigma Designs, Inc. ("Sigma") common stock during the period October 24, 1995 to February 13, 1997 (the "Class Period"). The complaint charges Sigma and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Sigma makes multimedia products for use in personal computer products, including MPEG products. The complaint alleges that during the Class Period, Sigma and the individual defendants made false and misleading statements about the state of Sigma's business, its finances, the success of its new marketing initiatives, the success of its development of newer products, demand for its products and its future prospects for the purpose of inflating the price of Sigma stock so they could complete an acquisition using shares as currency and sell 366,500 of stock they held at inflated prices for $3.7 million. Defendants were successful in inflating the price of Sigma stock to as high as $14-3/4 in May 1996, and the stock continued to trade at prices of $8 to $11 per share during the remainder of the Class Period until it was revealed on February 13, 1997 that the Company's results would be much worse than earlier forecasted due to lower demand and manufacturing problems, whereupon Sigma's stock immediately dropped to $5-7/8, later falling to as low as $2-5/16, 85% below its Class Period high. Plaintiffs seek to recover damages on behalf of all purchasers of Sigma common stock during the Class Period (the "Class"). They are 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 20 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 website 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 plaintiffs' 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 William Lerach/Alan Schulman/Darren Robbins, 800/449-4900 wsl@mwbhl.com