LOS ANGELES, March 24 /PRNewswire/ -- The law firm of Weiss & Lurie announced today that a class action lawsuit has been filed in the United States District Court for the Southern District of California, entitled Steinberg v. Dot Hill Systems Corporation, et al., on behalf of persons who acquired Dot Hill Systems Corporation ("Dot Hill" or "Company") securities between April 23, 2003 and February 3, 2005, inclusive (the "Class Period").
The Complaint alleges that during the Class Period, defendants violated the federal securities laws by publicly disseminating materially false and misleading statements concerning Dot Hill's financial results and business while failing to disclose material adverse facts, and further alleges that defendants' misstatements artificially inflated the price of the Company's securities. On February 3, 2005, the Company announced that it would restate its 2004 unaudited financial results. Following that announcement, the price of Dot Hill stock fell to as low as $5.70 per share, far below its Class Period high of $17.37 per share.
The Complaint alleges that, during the Class Period, defendants knew, or recklessly disregarded, but concealed from the investing public material adverse facts, including that: (a) the Company's accounting department suffered from material weaknesses and deficiencies and lacked the necessary staff and resources to perform its required functions; (b) the Company's inadequate internal accounting process and controls enabled Dot Hill management to manipulate the Company's cost of goods sold and to misclassify expenses, causing Dot Hill to issue false financial statements; (c) multiple areas of the Company's internal controls suffered serious deficiencies; (d) the Company lacked effective internal controls in its financial reporting process; and (e) the Company falsely reported its financial results for the first three quarters of fiscal year 2004 by improperly recognizing revenue and by improperly recording expenses. Plaintiff alleges that as a result of defendants' alleged misstatements, Dot Hill securities traded at artificially inflated prices during the Class Period.
Plaintiff seeks to recover damages on behalf of the class and is represented by Weiss & Lurie. The firm, with offices in New York and Los Angeles, has extensive experience in complex litigation, particularly securities class actions, and has been appointed lead class counsel in numerous consolidated and multi-district cases. For more information about the firm, please visit our website: http://www.wllawca.com/.
If you are a member of the class as described above, you may move the Court no later than March 31, 2006, to serve as a lead plaintiff. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995. A lead plaintiff is a representative party who 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 your decision whether or not to serve as a lead plaintiff. You may retain Weiss & Lurie, or other counsel of your choice, to serve as your counsel in this action.
If you wish to discuss this action, participate in this suit, or have any questions or concerns regarding this notice, or preservation of your rights, please contact:
Jordan L. Lurie, Esq.
Leigh A. Parker, Esq.
Weiss & Lurie - Los Angeles
Telephone: (800) 437-7918
email:
