NEW YORK-June 2, 2004- LAWFUEL -Notice is hereby given that a class action lawsuit was filed on June 2, 2004, in the United States District Court for the Middle District of Florida, on behalf of all purchasers of the common stock of Liquidmetal Technologies, Inc. (“LQMT” or the “Company”) (Nasdaq:LQMTE) between May 22, 2002 and March 30, 2004, inclusive (the “Class Period”) against LQMT, John Kang and Brian McDougal.
The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between May 22, 2002 and March 30, 2004, about its financial results. More specifically, the complaint alleges that the Company failed to disclose and/or misrepresented the following material adverse facts which were known to the defendants or recklessly disregarded by them: (1) that LQMT failed to make its product commercially feasible due to its high manufacturing cost; (2) that LQMT, struggling with the lack of market acceptance for the product, attempted to boost revenues through fraudulent means via a deal with a South Korean metals processing company; (3) that LQMT’s improving financial results were only made possible through improper revenue recognition practices in violation of Generally Accepted Accounting Principles (“GAAP”).
On February 20, 2004, the Company disclosed that it would have to restate revenues for the third and fourth quarters of 2002 and the first quarter of 2003 due to improper revenue recognition. On March 30, 2004, defendants revealed that the Company’s 10-K has been indefinitely delayed due to its inability to complete the audit of prior years’ financial results. On April 29, 2004, LQMT announced that it received a Nasdaq Staff Determination indicating that because the company has not timely filed a Form 10-K with the SEC for the period ended December 31, 2003, LQMT faces delisting from NASDAQ. In response to the news, the price of LQMT stock declined during the Class Period to close at slightly over $3 per share on March 30, 2004, a drop of over 80% from the stock’s Class Period high.
Plaintiff seeks to recover damages on behalf of class members and is represented by, among others, the law firm of Stull, Stull & Brody. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions.
If you acquired LQMT common stock between May 22, 2002 and March 30, 2004, you may, no later than July 5, 2004, request the Court appoint you as lead plaintiff.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action.
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 Aaron Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at SSBNY@aol.com, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com.