FOX & KILSHEIMER LLP SEEKS TO RECOVERY LOSSES FOR
INVESTORS WHO PURCHASED MTI TECHNOLOGY CORPORATION
NEW YORK – - The following statement was issued today by the law firm of Kaplan Fox & Kilsheimer LLP:
Corporation. ("MTI" or the "Company") (Nasdaq: MTIC) and certain of its officers and directors were named as defendants in a shareholder class action filed in the United States District Court for the Central District of
California. The action seeks damages for violations of the federal securities laws on behalf of all investors who purchased MTI securities between January 26, 2000 and July 27, 2000, inclusive (the "Class
Period"). The action seeks to recover for investors the amount they overpaid for their MTI securities purchases during the Class Period.
The complaint charges MTI and certain of its officers and
directors with violations of the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, MTI and its top officers made false statements about the Company's financial results, the
strong continuing demand for MTI's existing products and the strong bookings and order pipeline for MTI's Vivant product line, which defendants said was gaining momentum. These representations artificially
inflated the price of MTI stock to a Class Period high of $54-3/8. This upsurge in MTI's stock price enabled MTI's insiders to sell 265,000 shares of their MTI stock for proceeds of $9 million. On 7/12/00, MTI disclosed
a huge shortfall in sales in its first quarter of fiscal 2001 ("1st
Q'01"), and the resignation of its Chief Financial Officer. On this disclosure, MTI's stock dropped to as low as $5-1/4. Then, on 7/28/00, MTI announced its 1st
Q'01 results, including a loss of $.27 per share and increased reserves for doubtful accounts receivable. On this news, MTI's stock dropped below $4 per share, some 93% below the Class Period high.
Plaintiff is represented by the law firms of Kaplan Fox & Kilsheimer LLP, and the Law Offices of Bruce G. Murphy, both of which have many years of experience in prosecuting investor class actions in the
federal and state courts throughout the United States. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at
If you are a member of the Class, you may move the court no later than September 29,
2000, to serve as a lead plaintiff for the Class. In order to serve as a lead plaintiff, you must meet certain legal requirements.
If you purchased MTI
common stock during Class Period and suffered a loss on your investment, you may contact Kaplan Fox & Kilsheimer LLP at mail@KaplanFox.com or contact:
Frederic S. Fox, Esq.
Laurence D. King, Esq.
Adrienne L. Valencia, Esq.
Hae Sung Nam, Esq.
Kaplan Fox & Kilsheimer LLP
805 Third Avenue – 22nd Floo
New York, NY 10022
Fax: (212) 687-7714
Please Click Here to Join the Class Actions or Request Information