Berger & Montague, P.C. Client Sues Aerosonic Corporation On Behalf of Persons
Who Purchased Aerosonic Common Stock Between November 13, 1998 and March 17,
2003
PHILADELPHIA, Dec. 1 /PRNewswire/ -- On November 12, 2003, an investor
represented by the law firm Berger & Montague, P.C. (http://www.bergermontague.com/) filed the first class action suit against
Aerosonic Corporation ("Aerosonic" or the "Company"), J. Mervyn Nabors, Eric J. McCracken, Michael T. Reed and PricewaterhouseCoopers LLP (collectively, the
"Defendants") in the United States District Court for the Middle District of
Florida, Gaeta v. Aerosonic Corp, et al., civil action no. 8:03-cv-2373-T-24TBM,
on behalf of all persons or entities who purchased Aerosonic common stock
between November 13, 1998 through March 17, 2003 (the "Class Period"). Excluded
from the Class are Defendants, the officers and directors of the Company at all
times relevant, members of their immediate families, any entity in which any
Defendant has a controlling interest, and the legal affiliates, representatives,
heirs, controlling persons, successors and predecessors in interest or assigns
of any such excluded person or entity.
The complaint alleges that the Defendants violated sections 10(b) and 20(a) of
the Securities Exchange Act of 1934, and SEC Rule 10b-5, by engaging in a
fraudulent scheme which artificially inflated the price of Aerosonic common
stock during the Class Period. In sum, the complaint alleges that Defendants
overstated by millions of dollars Aerosonic's revenue, earnings and inventory
for the fiscal years ended January 31, 2002, 2001, 2000 and 1999 and the first
three fiscal quarters of the fiscal year ended January 31, 2003. Moreover, on
October 31, 2003, Aerosonic finally filed with the United States Securities and
Exchange Commission (the "SEC") its long-overdue 2003 Form 10-K for the fiscal
year ending January 31, 2003, in which it admitted to misstating those periods
and provided financial restatements for same, as well as warned investors that
"the financial information previously reported by the Company and included in
reports on Form 10-K and Form 10-Q previously filed by the Company for the
fiscal years ended January 31, 1999, 2000, 2001, and 2002, the quarters in such
fiscal years, and the first three quarters of the fiscal year ended January 31,
2003 should not be relied upon". In its 2003 Form 10-K, Aerosonic also made the
following disclosure: The Company has determined that its previously reported financial
information overstated inventory, understated cost of sales, overstated
revenue and incorrectly reported other items. Contributing to these
misstatements, among other things, were misstatements of the Company's
financial statements, the falsification of inventory records, improper
adjustments for obsolete and slow moving inventory, improper revenue
recognition, improper fixed asset capitalization, and errors in the
application of Staff Accounting Bulletin No. 101 (released by the United
States Securities and Exchange Commission in December 1999) ("SAB 101")
and generally accepted accounting principles.
Aerosonic has also recently reported that the SEC is continuing its formal
investigation of Company, which began in May 2003.
The Plaintiff is represented by the law firm of Berger & Montague, P.C. Berger &
Montague is a law firm of some 60 attorneys which concentrates, among other
things, in representing institutional and other investors in securities
litigation. For example, Berger & Montague has represented shareholders in
securities cases involving Sunbeam, Rite Aid, Waste Management, Drexel Burnham
Lambert and numerous other defendants. Addison & Delano, P.A. is serving as
co-counsel in Florida for the plaintiff.
If you purchased Aerosonic common stock during the Class Period, you may move
for appointment as Lead Plaintiff on or before January 13, 2004. A copy of the
complaint referenced above can be obtained from the clerk's office of the court
or can be viewed electronically at http://www.bergermontague.com/. If you have
any questions regarding this notice or otherwise, please contact: Merrill G. Davidoff, Esq. Lane L. Vines, Esq. Diane Werwinski, Paralegal
Berger & Montague, P.C. 1622 Locust Street
Philadelphia, PA 19103
Phone: 800-424-6690 or 215-875-3000
Fax: 215-875-4604
e-mail: DATASOURCE: Berger & Montague, P.C.
CONTACT: Merrill G. Davidoff, Esq., Lane L. Vines, Esq., or Diane Werwinski, Paralegal, all of Berger & Montague, P.C., 1-800-424-6690, or +1-215-875-3000, or fax, +1-215-875-4604, or Web site: http://www.bergermontague.com/
|