RADNOR, Pa., Feb. 6 – LAWFUEL – The Law News Network — The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United
States District Court for the Southern District of California on behalf of all
securities purchasers of Dot Hill Systems Corporation (Nasdaq: HILL) (“Dot
Hill” or the “Company”) from between April 23, 2003 and February 3, 2005,
inclusive (the “Class Period”).
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 Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A.
Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail
at info@sbclasslaw.com.
The complaint charges Dot Hill and certain of its officers and directors
with violations of the Securities Exchange Act of 1934. Dot Hill provides
storage systems for organizations that require networked storage and data
management solutions in an open-systems architecture. The complaint alleges
that defendants’ issued a series of false and misleading statements to the
market artificially inflating the Company’s stock. More specifically, the
Defendants failed to disclose the following materially adverse facts to the
market: (1) that the Company suffered from internal control deficiencies
related to its financial closing process, inventory processing, and processing
related to fixed assets; (2) that the Company’s enterprise resource planning
(“ERP”) software was outdated, and the Company did not have enough personnel
to properly manage incoming information; (3) that the Company incorrectly
classified certain product costs as operating expenses, failed to eliminate
corresponding revenue and cost of goods sold entries and failed to identify
duplicate entries; (4) that as a consequence of the foregoing, the Company’s
financial results were false and misleading and the analysis of its future
performance lacked in all reasonable basis.
On February 3, 2005, the Company announced its preliminary financial
results for the fourth quarter 2004 and that it would be restating its 2004
unaudited financial results due to the material weaknesses in its internal
control over its financial closing process. On this news, shares of Dot Hill
fell $0.66 per share, or 10.38 percent, to close, on February 4, 2005, at
$5.70 per share.
Plaintiff seeks to recover damages on behalf of class members and is
represented by the law firm of Schiffrin & Barroway, which prosecutes class
actions in both state and federal courts throughout the country. Schiffrin &
Barroway is a driving force behind corporate governance reform, and has
recovered billions of dollars on behalf of institutional and individual
investors from the United States and around the world. For more information
about Schiffrin & Barroway, or to sign up to participate in this action
online, please visit http://www.sbclasslaw.com
If you are a member of the class described above, you may, not later than
April 3, 2006 move the Court to serve as lead plaintiff of the class, if you
so choose. 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 Schiffrin & Barroway, or other
counsel of your choice, to serve as your counsel in this action.
