MURRAY, FRANK & SAILER LLP ANNOUNCES THE FILING OF A SHAREHOLDER CLASS ACTION AGAINST PIXELPLUS CO., LTD. - PXPL
New York, NY April 21, 2006- Murray, Frank & Sailer LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of all who purchased the American Depository Shares of Pixelplus Co, Ltd. (NasdaqNM: PXPL) ("Pixelplus" or the "Company") between December 21, 2005 through April 11, 2006, inclusive (the "Class Period"). The Complaint alleges violations of both the Securities Exchange Act of 1934 and the Securities Act of 1933.
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The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, during the Class Period, the Company reported materially false and misleading revenues for each reporting period in 2005. The Complaint alleges that the Company violated Generally Accepted Accounting Principles, by failing to recognize sales to one of its affiliates, PTI, on a consolidated basis and recognizing sales that were uncollectible, which resulted in the Company overstating its revenues for 2005.
On April 11, 2006, the Company announced, among other things, that its financial statements for 2005 should no longer be relied upon because the Company improperly recognized sales to PTI because the Company failed to consolidate PTI's results and accounted for sales that had uncertain collectibility. Pixelplus admitted that it controls PTI as it has the ability to elect two-thirds of PTI's Board. As a result, the Company announced that revenues would be reduced by approximately $3.6 million and $2.5 million, for the fourth quarter of 2005 and fiscal year 2005, respectively. Following these adverse disclosures, the Company's stock price dropped nearly 37.2%.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Pixelplus ADRs on any world exchange between December 21, 2005 through April 11, 2006 and sustained damages, you may, no later than June 16, 2006, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Bradley P. Dyer of Murray, Frank & Sailer LLP.
Murray, Frank & Sailer LLP
Bradley P. Dyer
Fax: (212) 682-1892
Email: [email protected]