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Pemstar Inc.

Rochester, MN: (Jul-05-07) A shareholders lawsuit was filed against Pemstar Inc. alleging that the Rochester-based electronics company and its executives misled investors in order to inflate the price of Pemstar stock. The lawsuit claimed the company discovered accounting problems at its factory in Mexico and revised financial statements to show larger losses than originally stated. The Cornelia I. Crowell GST Trust filed the lawsuit in June 2005 against Pemstar and its three top executives, Chairman/Chief Executive Officer Allen Berning, Chief Operating Officer Roy Bauer, and Chief Financial Officer Greg Lea.

In a settlement reached, the electronics company and its three top executives have agreed to close out the 2005 shareholder lawsuit pending in federal court with a $2.9 million payout that stands to benefit investors who purchased Pemstar stock from Jan. 30, 2003 through Jan. 12, 2005. On average, the agreement gives those investors 13 cents per share purchased, although payments depend on when stock was bought. [POST BULLETIN: SECURITIES FRAUD]


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Published on Jul-7-07


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