PHILADELPHIA, Oct. 11 /PRNewswire/ -- The law firm of Kohn, Swift & Graf, P.C. announces that a class action shareholder lawsuit has been commenced against Pall Corporation ("Pall" or the "Company") . The lawsuit, filed in the United States District Court for the Eastern District of New York, seeks damages for violations of federal securities laws on behalf of all investors who purchased Pall securities between April 20, 2007 and August 8, 2007 (the "Class Period").
The Complaint alleges that Pall and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, 15 U.S.C. Sections 78j(b) and 78t(a) and Rule 10b-5 promulgated thereunder, 17 C.F.R. Section 240.10b-5. The Company, together with its subsidiaries, manufactures and markets filtration, purification, and separation products and integrated systems solutions worldwide.
According to the Complaint, during the Class Period, defendants issued materially false and misleading statements that misrepresented and failed to disclose: (1) that Pall was materially overstating its financial results by understating its income tax liability; (2) that the Company misstated its effective tax rate, and the factors affecting the Company's effective tax rate; (3) that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On July 19, 2007, after the markets closed, Pall announced that the Audit Committee of its Board of Directors had commenced an inquiry into a possible material understatement of U.S. income tax payments and of its provision for income taxes in certain prior periods beginning with fiscal year ended July 31, 1999. In response to this announcement, the price of Pall common stock declined from $48.78 per share to $41.11 per share, on unusually high trading volume. Subsequently, on August 2, 2007, Pall disclosed that it was restating its financial statements for each of the fiscal years 1999 through 2006, and for each of the fiscal quarters ended October 31, 2006, January 31, 2007 and April 30, 2007. The restatements were necessitated by the Company's understatement of U.S. income tax payment and its provision for income taxes. The Company stated that the taxes payable could be in excess of $130 million, exclusive of interest and penalties. Further, the Company advised investors that they could no longer rely on the Company's previously issued financial statements. Upon this news, shares of the Company's stock fell $1.21 per share, to close at $39.90 per share, on heavy trading volume.
If you bought the securities of Pall during the Class Period, and sustained damages, you may, no later than October 15, 2007, request that the Court appoint you as lead plaintiff. 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 Kohn, Swift & Graf, P.C., or other counsel of your choice, to serve as your counsel in this action.
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 Denis F. Sheils, Esq. or William E. Hoese, Esq. at Kohn, Swift & Graf, P.C., by e-mail at
