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Lockridge Grindal Nauen P.L.L.P. Announces the Filing of a Class Action Suit Against Hutchinson Technology, Inc. and Certain of Its Officers and Directors on Behalf of InvestorsMINNEAPOLIS --(Business Wire)-- Sept. 12, 2005 -- The law firm of Lockridge Grindal Nauen P.L.L.P. announces that it filed a class action lawsuit on Friday, September 9 on behalf of purchasers of the securities of Hutchinson Technology, Inc. ("Hutchinson" or the "Company") (Nasdaq: HTCH) between October 4, 2004 and August 29, 2005, inclusive (the "Class Period") seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). If you bought the securities of Hutchinson between October 4, 2004 and August 29, 2005 and sustained damages, you may, no later than November 8, 2005, request that the Court appoint you as lead plaintiff. 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. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Lockridge Grindal Nauen P.L.L.P., or other counsel of your choice, to serve as your counsel in this action. The action is pending in the United States District Court for the District of Minnesota against defendants Hutchinson Technology, Inc., Wayne M. Fortun, John A. Ingleman and Jeffrey W. Green. A copy of the complaint filed in this action is available from the Court. As set forth in the complaint, Hutchinson is a designer manufacturer and supplier of suspension assemblies that hold magnetic read-write heads at microscopic distances above disks in disk drives. According to the Company, the smaller the distance between a read-write head and the surface of a disk, the greater the storage capacity of a disk drive. During the Class Period, Hutchinson presented itself as a company that consistently was beating its own earnings guidance. Defendants' positive statements caused the price of Hutchinson common stock to be artificially inflated during the Class Period. However, defendants' statements were materially false and misleading. First, defendants overstated the demand for the Company's product. Defendants also 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, defendants' statements lacked any basis in fact and were materially false and misleading. Defendants took advantage of the artificially inflated Hutchinson stock price by selling their own shares for more than $12.1 million in proceeds. On August 30, 2005, before the market opened, Hutchinson issued a press release stating 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%. In reaction to this lowered guidance, Hutchinson stock fell $5.35 per share to $26.16 on August 30, 2005. This constituted a drop of 17 percent, from its closing price of $31.51 on August 29, 2005. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Lockridge Grindal Nauen P.L.L.P. The firm has considerable experience in prosecuting securities class actions, has extensive experience representing shareholders in class actions, and has successfully recovered millions of dollars for defrauded investors and shareholders. The reputation and expertise of the firm in shareholder and other class action litigation have been repeatedly recognized by courts, which have appointed the firm to major positions in complex multi-district and consolidated litigations. Lockridge Grindal Nauen P.L.L.P. has offices in Minneapolis and Washington, D.C. If you have any questions about the lawsuit or how you may be able to recover losses, please call or write: -0- *T Gregg M. Fishbein, Esq. ([email protected]) Gregory J. Myers ([email protected]) Lockridge Grindal Nauen P.L.L.P. 100 Washington Avenue South, Suite 2200 Minneapolis, MN 55401 (612) 339-6900 *T |
