The law firm of Milberg Weiss Bershad Hynes & Lerach LLP announced yesterday that a class action lawsuit was filed on February 21, 2001, on behalf of purchasers of American Depositary Shares (ADS) of Nice Systems (NASDAQ: NICE) between February 16, 2000 and February 7, 2001 inclusive.
The action is pending in the United States District Court for the District of New Jersey, located at Martin Luther King, Jr. Federal Building and U.S. Courthouse, 50 Walnut Street, Newark, New Jersey 07101, against defendants Nice Systems, Benjamin Levin (Chairman of the Board of Directors of the Company and Chief Executive Officer of the Company until February 1, 2001), Avraham Lazar (member of the Board of Directors of the Company and Director of Business Development) and Yuval Yanai (Chief Financial Officer of the Company until October 2000). The docket number for the case has not yet been assigned nor has a presiding judge been designated. A further notice to class members will be published when this information becomes available.
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 February 16, 2000 and February 7, 2001, thereby artificially inflating the price of Nice Systems securities.
The Milberg Weiss annoucement reads: "Specifically, the company repeatedly issued press releases reporting 'record' financial results during the Class Period. On December 28, 2000, the Company issued a press release warning that it would not meet its previous earnings and revenue expectations for the fourth quarter of 2000 and that it would be reducing its workforce. In response to this announcement, Nice Systems shares dropped from $45 a share to $17.50 per share."
In Milberg Weiss' words: "Unfortunately, this was not the end of the Company's bad news. On February 8, 2001, the Company once again shocked investors by announcing that certain of its ``sales'' to Stevens Communications, Inc., a company that Nice Systems recently acquired, in 1999 and 2000 were not true sales, but were rather consignment arrangements. As a result, Nice Systems would be forced to restate its previously reported financial results for 1999 and for the first three quarters of 2000. In addition, Nice Systems reported that it was experiencing difficulties integrating its new acquisitions and would be laying off 20% of its workforce. In response to this announcement, the price of Nice Systems ADSs fell another 30% to close at $13.32, well below its Class Period high.
"If you bought the securities of Nice Systems between February 16, 2000 and February 7, 2001, you may, no later than April 16, 2001, request that 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 Milberg Weiss Bershad Hynes & Lerach LLP, or other counsel of your choice, to serve as your counsel in this action."
Milberg Weiss Bershad Hynes & Lerach LLP, a 170-lawyer firm with offices in New York City, San Diego, San Francisco, Los Angeles, Boca Raton, Seattle and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States.
Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of World War II and other human rights violations, and has been responsible for more than $30 billion in aggregate recoveries.
A copy of the complaint filed in this action can be viewed on Milberg Weiss' website at: http://www.milberg.com/nicesystems/.
Published by Israel's Business Arena on February 22, 2001.