WASHINGTON- Feb. 16, 2005- LAWFUEL – The Law News Network -The law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has filed a lawsuit on behalf of its client and on behalf of other similarly situated purchasers of the securities of Sipex Corporation (“Sipex” or the “Company”) (Nasdaq:SIPX) between April 11, 2003 and January 20, 2005, inclusive (the “Class Period”), in the United States District Court for the Northern District of California.
The complaint names as defendants Sipex, Walid Maghribi (former President and Chief Executive Officer), Phil Kagel (former Chief Financial Officer), and Ray Wallin (current Chief Financial Officer). According to the Complaint, defendants violated sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period.
Sipex designs, manufactures and markets high-performance semiconductors that are used by original equipment manufacturers operating in the computing, consumer electronics, communications and networking infrastructure markets. Throughout the Class Period, Sipex reported positive results in SEC filings and publicly disseminated press releases. Defendants attributed these results to increased semiconductor sales and cost savings resulting from a restructuring of its operations. The Complaint alleges however, that unbeknownst to the Class, the Company’s seeming success was the result of improper accounting that artificially inflated Sipex’s reported results.
The Complaint further alleges that the truth began to emerge on January 20, 2005 when, after the market closed, Sipex issued a press release announcing that it might need to restate its reported financial statements for fiscal 2003, and for the first three quarters of fiscal 2004. The Company stated that it had discovered “improper recognition of revenue during these periods on sales for which price protection, stock rotation and/or return rights may have been granted,” and that the Company’s audit committee and board of directors had commenced an internal investigation of the matter. As a result of the investigation, Sipex stated that it would not be able to file its 2004 annual report with the SEC on time. In reaction to this news, the price of Sipex common stock dropped on unusually high volume, falling from $0.90 per share, or 23%, from its previous trading day’s closing price of $3.84, to close at $2.94 on January 21, 2005.
If you purchased or acquired Sipex securities during the Class Period, you may, no later than March 25, 2005, move the court to be appointed as Lead Plaintiff. There are certain legal requirements to serve as Lead Plaintiff.
Any member of the purported class may move the court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent class member. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as Lead Plaintiff. To be a member of the class, you need not take any action at this time.
Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Philadelphia and Chicago, and is active in major litigation pending in federal and state courts throughout the nation. You may visit the firm’s website at www.cmht.com.
The firm’s reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
1100 New York Avenue, N.W.
West Tower B Suite 500
Washington, D.C. 20005
Telephone: 888-240-0775 or 202-408-4600