New CYMI suit. The sharks are feeding.....
biz.yahoo.com
Securities Fraud Claims Filed Against Cymer Inc. By
Entwistle & Cappucci LLP In Shareholder Class
Action
NEW YORK--(BUSINESS WIRE)--Sept. 14, 1998--Entwistle & Cappucci LLP, a prominent New York law firm
specializing in securities litigation, announced that a class action lawsuit for violations of the federal securities laws has been
filed in the United States District Court for the Southern District of California on behalf of all persons who purchased the
common stock of Cymer Inc. (''Cymer'' or the ''Company'') (NASDAQ: CYMI - news), between April 24, 1997 and Sept.
26, 1997, inclusive (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 or defects in its lasers, which would
result in 40%-50% EPS growth for Cymer over the next several years and 1998 EPS of $1.15-$1.20, artificially inflated
Cymer's stock to a Class Period high of $49-1/4 on Aug. 25, 1997.
During the Class Period, Cymer's top insiders and controlling shareholders sold or disposed of 1,869,086 shares of Cymer
stock, at as high as $45-1/2, generating $48.5 million in proceeds, while Cymer itself completed a $173 million convertible
debenture public 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, Cymer's stock began to drop as
rumors circulated and certain 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 the Company's lasers, which would
negatively affect Cymer's 1998-99 results.
While the Company 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, when Cymer was ultimately forced to admit that acceptance of DUV photolithography
technology by semiconductor manufacturers was slowing, its Series 500 lasers were encountering significant reliability and
performance problems, demand and orders for its lasers had declined and its 1998 revenues and EPS would be much lower
than earlier forecast.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Entwistle & Cappucci
LLP which maintains offices in New York City and is active in major litigations pending in federal and state courts throughout
the United States.
Entwistle & Cappucci LLP represents a broad variety of clients ranging from individuals to Fortune 100 companies before
federal and state courts, grand juries, administrative and regulatory agencies and arbitration panels.
The firm has expertise in securities litigation including class and derivative actions; mergers and acquisition related litigation;
antitrust; banking litigation; trade-related contract disputes; patent, copyright and trademark; employment law and executive
compensation; insurance and reinsurance (including coverage, insolvency and subrogation disputes); product liability; real
estate and land use disputes; and workout and reorganization related litigation.
If you are a member of the Class described above, you may, no later than 60 days from Sept. 3, 1998, 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, wish to participate in the action as a class representative, or have any questions concerning
this notice, or your rights, or interests with respect to this matter, please contact plaintiff's counsel, Vincent R. Cappucci, Esq.
of Entwistle & Cappucci LLP at 330 Madison Avenue, 27th Floor, New York, N.Y. 10017 (Telephone: 212/867-1030);
(E-mail: Entcap1@aol.com).
Contact:
Entwistle & Cappucci LLP
Vincent R. Cappucci, Esq., 212/867-1030
fax: 212/697-8747
e-mail: Entcap1@aol.com |
