The Law Firm of Goldman Scarlato & Karon, P.C. Announces Class Action Lawsuit Against FARO Technologies Inc.
19 January 2006 - 3:56AM
Business Wire
Goldman Scarlato & Karon, P.C., a law firm with offices in
Conshohocken, PA and Cleveland, OH announces that a lawsuit has
been filed in the United States District Court for the Middle
District of Florida, on behalf of persons who purchased or
otherwise acquired publicly traded securities of FARO Technologies
Inc. ("FARO" or the "Company") (NASDAQ:FARO) between May 6, 2004
and November 3, 2005, inclusive, (the "Class Period"). The lawsuit
was filed against FARO and certain officers and directors
("Defendants"). If you are a member of this class and wish to view
a copy of a complaint and join this class action, please e-mail us
info@gsk-law.com and request a copy of the complaint and a
plaintiff certification. If you are a member of the Class, you may
move the Court no later than February 6, 2006 to serve as a lead
plaintiff for the Class. 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. However, if you choose to remain an absent class member,
unless and until a class is certified, you are not represented by
counsel. The complaint alleges that Defendants violated Sections
10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule
10b-5 promulgated thereunder. Specifically, the complaint alleges
that FARO repeatedly issued false and misleading quarterly and
annualized financial guidance during the Class Period in reckless
disregard of the Company's deficient internal control systems. The
complaint alleges that FARO represented itself as having
implemented lean manufacturing principles that had brought about
numerous operating and efficiency improvements in its production
capacity. However, theses statements were materially false and
misleading because the Company's internal inventory and accounting
controls were defective during the class period. On November 3,
2005, investors learned the truth regarding the adverse impact of
the Company's deficient control systems and poor financial
performance. After the market closed, the Company disclosed that it
had incurred $1.6 million in inventory costing and consumption
variances due to processing problems related to the implementation
of a new ERP system. As a result of this disclosure, FARO stock
fell $5.88 per share to close at $16.50 per share on November 7,
2005. If you bought FARO securities between May 6, 2004 and
November 3, 2005, inclusive, and would like to obtain information
about the lawsuit, then you are invited to call (888) 753-2796 to
speak with an advisor.
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