| Company: | Hutchinson Technology, Inc. |
| Ticker Symbol: | NASD: HTCH |
| Class Period: | October 4, 2004 to August 29, 2005 |
| Date Filed: | Sep-09-05 |
| Lead Plaintiff Deadline: | Nov-08-05 |
| Court: | District, MN |
| Allegations: |
A lawsuit seeking class action status has been filed in the United States District Court for the District of Minnesota on behalf of all persons who purchased the securities of Hutchinson Technology, Inc. (Nasdaq:HTCH) ("Hutchinson" or the "Company") between October 4, 2004 and August 29, 2005 (the "Class Period").
The Complaint alleges that Hutchinson violated federal securities laws. Specifically, Hutchinson made positive statements concerning its history of beating guidance issued by the defendants and its success in manufacturing and marketing its products. Defendants' statements were materially false and misleading because defendants overstated the demand for Hutchinson's products, defendants failed to disclose that a shift in the mix of products toward new, low-yielding products was negatively impacting the Company's business and prospects, and defendants failed to disclose that they had not implemented an adequate system of internal controls. As a result of the foregoing, defendants' statements that Hutchinson was operating according to plan, and their guidance lacked any reasonable basis in fact. While, the price of Hutchinson common stock was artificially inflated, defendants sold their personally-held shares of Hutchinson stock for more than $12.1 million in proceeds.
On August 30, 2005, Hutchinson issued a press release announcing lowered guidance for the fourth quarter 2005. The Company stated that earnings would be $0.05 per share, compared to previous guidance of $0.65, and that the Company's gross margins would fall as low as 19%, significantly lower than the Company's previous estimate of as high as 30%. On this news, Hutchinson stock fell $5.35 per share, or 17%, from its closing price of $31.51 on August 29, 2005, to $26.16 on August 30, 2005.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
At LawyersandSettlements.com, it is our goal to keep you informed about important legal cases and settlements. We are dedicated to helping you resolve your legal complaints.
The Complaint alleges that Hutchinson violated federal securities laws. Specifically, Hutchinson made positive statements concerning its history of beating guidance issued by the defendants and its success in manufacturing and marketing its products. Defendants' statements were materially false and misleading because defendants overstated the demand for Hutchinson's products, defendants failed to disclose that a shift in the mix of products toward new, low-yielding products was negatively impacting the Company's business and prospects, and defendants failed to disclose that they had not implemented an adequate system of internal controls. As a result of the foregoing, defendants' statements that Hutchinson was operating according to plan, and their guidance lacked any reasonable basis in fact. While, the price of Hutchinson common stock was artificially inflated, defendants sold their personally-held shares of Hutchinson stock for more than $12.1 million in proceeds.
On August 30, 2005, Hutchinson issued a press release announcing lowered guidance for the fourth quarter 2005. The Company stated that earnings would be $0.05 per share, compared to previous guidance of $0.65, and that the Company's gross margins would fall as low as 19%, significantly lower than the Company's previous estimate of as high as 30%. On this news, Hutchinson stock fell $5.35 per share, or 17%, from its closing price of $31.51 on August 29, 2005, to $26.16 on August 30, 2005.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
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