MURRAY, FRANK & SAILER LLP ANNOUNCES CLASS ACTION LAWSUIT AGAINST LEXAR MEDIA, INC. ON BEHALF OF SHAREHOLDERS - LEXR
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New York, NY (PrimeZone) June 1, 2004
Murray, Frank & Sailer LLP announces that a class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of all shareholders who purchased or acquired the common stock of Lexar Media, Inc. (Nasdaq: LEXR; "Lexar" or the "Company") between July 17, 2003 through April 16, 2004 inclusive (the "Class Period").
The complaint alleges that Lexar, Eric Stang, and Brian McGee 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 July 17, 2003 and April 16, 2004. More specifically, the Complaint charges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company underestimated the impact and the timing of competitive pricing moves in the flash memory market; (2) that the Company's preferential supply relationship with Samsung failed to insulate Lexar from fluctuations in pricing and availability of flash memory, which negatively affected the Company's product margins; and (3) that the Company lacked sufficient royalty income to offset product gross margins pressure.
On April 15, 2004, Lexar reported financial results for the first quarter ended March 31, 2004. After several quarters of relatively stable average selling prices, second-quarter price declines were sizeable. These declines were occurring sooner than Lexar had previously anticipated. News of this shocked the market. Shares of Lexar fell $5.03 per share or 32.56 percent on April 16, 2004, to close at $10.42 per share.
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 acquired the common stock of Lexar Media Inc. between July 17, 2003 through April 16, 2004 inclusive and sustained damages, you may, no later than July 20, 2004, move the Court to serve as lead plaintiff of the class. 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. You can join this class action online at http://www.murrayfrank.com/cases.htm. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
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