On September 12, 2000, Wolf Haldenstein Adler Freeman & Herz LLP commenced a class action lawsuit in the United States District Court for the District of Maryland on behalf of purchasers of the securities of Acrodyne Communications, Inc. ("Acrodyne'' or the "Company'') (NASDAQ: ACRO) between May 18, 1999 and August 14, 2000, inclusive (the "Class Period").
If you wish to read the Acrodyne Complaint, please click on the Complaint link. The complaint alleges Acrodyne and certain of its current and former officers with violations of federal securities laws.
In particular, the Complaint claims that Acrodyne improperly overstated its inventory and gross profits during the Class Period, which will require the Company to amend and restate its 1999 year-end results and its results for first quarter ended March 31, 2000.
On August 14, 2000, the Company issued a press release announcing that that it would delay the filing the Company's Form 10-Q for the quarter ended June 30, 2000. The Company also disclosed that it planned to amend and restate its financial results for 1999 and the first quarter of 2000, and that it would engage an independent accounting firm for the purpose of conducting a full review of the inventory balances and related activity to determine the extent of any amendment and restatement. As a result of these revelations, Acrodyne's stock price tumbled approximately 37% on August 14, 2000, until Nasdaq halted trading. As of the date of this release, trading has not resumed.
Additional cases have been filed on behalf of investors. On April 18, 2001, the company announced that the United States District Court for the District of Maryland gave preliminary approval to a proposed settlement. "The proposed settlement requires the Company to issue to the class plaintiffs five (5) year warrants to purchase One Million Six Hundred Thousand (1,600,000) shares of the Company's voting common stock at an exercise price of One Dollar ($1.00) per share and to pay the class plaintiffs Seven Hundred Fifty Thousand Dollars ($750,000.00) in the aggregate. It is anticipated that the payment of cash portion of the proposed settlement is to be funded by the Company's officers and directors indemnity insurance policy. The Court, by Order dated April 9, 2001, preliminarily approved the proposed settlement and established the date of June 11, 2001 as the final day for a class plaintiff to request exclusion from the class or to object to the Settlement. Although there is no guarantee that the settlement as currently proposed will be finalized, the Company is hopeful that a final settlement of the litigation will be approved by the Court in June 2001." The settlement was approved on June 26, 2001. Claim forms can be printed from the Claims Administrator's website, www.gardencitygroup.com.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Fred Taylor Isquith, Esq. at Wolf Haldenstein Adler Freeman & Herz LLP, 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (your e-mail should make reference to Acrodyne), or click on the link marked "Participate In This Class Action."