RADNOR, Pa., April 27 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Central District of California on behalf of all common stock purchasers of U.S. Auto Parts Network, Inc. ("U.S. Auto" or the "Company") pursuant or traceable to the Company's February 8, 2007 Initial Public Offering.
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 Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
The Complaint charges U.S. Auto Parts and certain of its officers and directors with violations of the Securities Act of 1933. U.S. Auto Parts, a portfolio company of Oak Investment Partners, is an online provider of aftermarket auto parts, including body parts, engine parts, performance parts and accessories.
The Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts: (1) that U.S. Auto Parts was experiencing major integration problems of PartsBin, a company that it acquired prior to the IPO; (2) specifically, integration problems with PartsBin existed due to the different distribution methods utilized by both companies to fill customer's orders; (3) that due to these problems, U.S. Auto Parts had trouble filling customer orders, and was subsequently required to issue credit to its customers for out-of-stock products; (4) that due to these problems, customers were canceling orders en mas. This caused the Company to offer substantial discounts which eroded its gross margins; (5) that all of the above resulted in the Company experiencing a horrendous fourth quarter which would lead to disappointing results for the Company's fiscal year 2006; and (6) that the Company lacked adequate internal and financial controls.
On February 8, 2007, U.S. Auto Parts conducted its IPO and raised over $100 million in net proceeds. Then on March 20, 2007, after the market had closed for the day, U.S. Auto Parts disclosed its fourth-quarter and year-end financial results, which were drastically below expectations.
Upon the release of this news, the Company's stock declined $4.58 per share, or 41.4 percent, to close on March 21, 2007 at $6.49 per share, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/ .
If you are a member of the class described above, you may, not later than May 29, 2007 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 Topaz & Kessler or other counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin Barroway Topaz & Kessler, LLP
Darren J. Check, Esq.
Richard A. Maniskas, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at
