BALA CYNWYD, Pa., Nov. 5 /PRNewswire/ -- 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 Northern District of California on behalf of all securities purchasers of Tripath Technology Inc. ("Tripath" or the "Company") from January 29, 2004 through October 22, 2004, 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 (Marc A. Topaz, Esq. or Darren J. Check, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges Tripath, Adya Tripathi, and David Eichler with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the Complaint alleges 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 improperly recognized revenue from sales of product that was eventually returned to the distributor; (2) that as a result of this, the Company had to increase its sales return reserve for the third quarter and had to take a charge of approximately $4.0 - $4.5 million for excess inventory; (3) that the Company''s financial results were in violation of Generally Accepted Accounting Principles ("GAAP"); (4) that the Company lacked adequate internal controls, especially the ability to adequately estimate distributor sales returns in accordance with SFAS no. 48; and (5) that as a result of the above, the Company''s financial results were materially inflated at all relevant times and the defendants lacked a reasonable basis for their statements regarding the Company.
On October 22, 2004, Tripath announced that net revenues for the third quarter of 2004 would be significantly below prior guidance of $4 - $4.5 million. Moreover, Tripath announced that it may have to restate its revenue for the quarter ended June 30, 2004. In addition, Tripath planed to take a charge of approximately $4.0 - $4.5 million for excess inventory. News of this shocked the market. Shares of Tripath fell $.75 per share, or 49.34 percent, on October 25, 2004, to close at $.77 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 in excess of a billion dollars on behalf of institutional and high net worth individual investors. 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 January 4, 2005, 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.
CONTACT: Schiffrin & Barroway, LLP Marc A. Topaz, Esq. Darren J. Check, Esq. Three Bala Plaza East, Suite 400 Bala Cynwyd, PA 19004 1-888-299-7706 (toll-free) or 1-610-667-7706 Or by e-mail at info@sbclasslaw.com
Schiffrin & Barroway, LLP
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of all securities purchasers of Tripath Technology Inc. ("Tripath" or the "Company") from January 29, 2004 through October 22, 2004, 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 (Marc A. Topaz, Esq. or Darren J. Check, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges Tripath, Adya Tripathi, and David Eichler with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the Complaint alleges 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 improperly recognized revenue from sales of product that was eventually returned to the distributor; (2) that as a result of this, the Company had to increase its sales return reserve for the third quarter and had to take a charge of approximately $4.0 - $4.5 million for excess inventory; (3) that the Company''s financial results were in violation of Generally Accepted Accounting Principles ("GAAP"); (4) that the Company lacked adequate internal controls, especially the ability to adequately estimate distributor sales returns in accordance with SFAS no. 48; and (5) that as a result of the above, the Company''s financial results were materially inflated at all relevant times and the defendants lacked a reasonable basis for their statements regarding the Company.
On October 22, 2004, Tripath announced that net revenues for the third quarter of 2004 would be significantly below prior guidance of $4 - $4.5 million. Moreover, Tripath announced that it may have to restate its revenue for the quarter ended June 30, 2004. In addition, Tripath planed to take a charge of approximately $4.0 - $4.5 million for excess inventory. News of this shocked the market. Shares of Tripath fell $.75 per share, or 49.34 percent, on October 25, 2004, to close at $.77 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 in excess of a billion dollars on behalf of institutional and high net worth individual investors. 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 January 4, 2005, 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.
CONTACT: Schiffrin & Barroway, LLP Marc A. Topaz, Esq. Darren J. Check, Esq. Three Bala Plaza East, Suite 400 Bala Cynwyd, PA 19004 1-888-299-7706 (toll-free) or 1-610-667-7706 Or by e-mail at info@sbclasslaw.com
Schiffrin & Barroway, LLP