Struck by litigation over its accounting practices before, barcode scanner specialist Symbol Technology has been hit by a class action lawsuit in the United States District Court.
The federal class action lawsuit has been filed against the Company and two former officers of the Company in the United States District Court for the Eastern District of New York.
The suit placed on behalf of purchasers of Symbol Technologies, Inc publicly traded securities between
The Complaint alleges that Symbol, and certain of its officers and directors, violated federal securities laws by issuing misleading public statements. Specifically, throughout the Class Period, defendants issued numerous positive statements about the Company’s performance and future prospects.
The complaint alleges that defendants failed to disclose and/or misrepresented the following adverse facts: (i) that Symbol had inadequate and deficient internal and financial controls; (ii) that Symbol’s reported expenses were understated; (iii) that Symbol had massive overcapacity, inefficient operations and obsolete assets; (iv) that Symbol was experiencing declining demand for its products; and (v) as a result of the foregoing, defendants’ statements concerning the Company’s financial prospects were lacking in a reasonable basis at all relevant times.
In a company statement Symbol said it is reviewing the complaint and intends to defend the suit vigorously.