RADNOR, Pa., Oct. 10 /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 Eastern District of Missouri on behalf of all purchasers of securities of MEMC Electronics Materials, Inc. ("MEMC" or the "Company") from June 13, 2008 through July 23, 2008, 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 Topaz & Kessler, LLP (Darren J. Check, Esq. or David M. Promisloff, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
The Complaint charges MEMC and certain of its officers and directors with violations of the Securities Exchange Act of 1934. MEMC designs, manufactures, and sells silicon wafers for the semiconductor industry worldwide. Its products include prime polished wafers, such as OPTIA and annealed products; epitaxial wafers consisting of thin silicon layer grown on the polished surface of the wafer; and test/monitor wafers for testing semiconductor fabrication lines and processes. 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 had experienced material disruptions in its Texas and Italy facilities; (2) that such disruptions had materially hindered the Company's ability to generate expected revenues; (3) that the Company lacked adequate internal and financial controls; and (4) that, as a result of the foregoing, the Company's previously issued guidance became lacking in any reasonable basis and required immediate revision.
On July 23, 2008, the Company shocked investors when it disclosed, for the first time, that in June 2008 there was a failure of a heat-exchanger at the Company's Merano, Italy facility that reduced the Company's second quarter polysilicon output by almost five percent. Additionally, the Company informed investors that a loose pipe fitting caused a fire at the Company's Pasadena, Texas facility which resulted in a shutdown of half the silane production for approximately a week. This was the first revelation that the Company had suffered significant problems at its production facilities. These problems caused the Company's second quarter net sales to be over $8 million less than the bottom range of the financial guidance that the Company issued in April 2008.
Upon the release of this news, the Company's shares fell $11.57 per share, or 21.51 percent, to close on July 24, 2008 at $42.23 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 November 17, 2008, 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. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
CONTACT: Schiffrin Barroway Topaz & Kessler, LLP
Darren J. Check, Esq.
David M. Promisloff, 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
