FOX & KILSHEIMER LLP FILES
SECURITIES FRAUD CLASS ACTION
AGAINST NCI BUILDING SYSTEM, INC.
NEW YORK – May 1, 2001– Kaplan Fox & Kilsheimer LLP (www.KaplanFox.com) has filed a class action against NCI Building Systems, Inc. and certain of the Company’s officers and directors in the
United States District Court for the Southern District of Texas, Houston Division. The suit is brought on behalf of all persons or entities who purchased the common
stock of NCI Building Systems, Inc. (“NCI”) (NYSE: NCS) between August 25, 1999 and April 12, 2001 inclusive (the “Class Period”).
The complaint charges NCI and certain of its officers and directors
with violations of the Securities Exchange Act of 1934. The complaint alleges that during the class period, defendants issued to the investing public false and misleading
financial statements and press releases concerning NCI’s publicly reported earnings. On April 12, 2001, the Company issued a press release announcing it had determined
that its audited financial statements for the fiscal year ended October 31, 2000, as well as for the quarter ended January 31, 2001, were required to be restated due to
“accounting errors.” NCI also revealed that some adjustments may also be required for the financial statements for the third and fourth quarters of fiscal
1999. NCI further revealed that the Company’s management information system routinely processed some accounting entries incorrectly, which were routinely masked by
improper manual accounting entries. NCI claims that the individuals responsible for the improper entries are no longer with the Company.
As a result of the accounting irregularities, NCI revised its net
income for fiscal 2000 to $43.8 million or $2.40 per diluted share, compared with the previously reported income of $51.9 million or $2.84 per diluted share. NCI
also revised its net income for quarter ended January 31, 2001 to $2.6 million or $0.15 per diluted share, compared with $4.0 million or $0.22 per diluted share. NCI
further revealed that the sales for the second quarter ending April 30, 2001 would be down compared to the $216.6 million reported in the first quarter of fiscal 2001 and
that it expects net income to be significantly below the restated net income for the first fiscal quarter of 2001. On Monday, April 16, 2001, NCI’s common stock price
plunged 32% to close at $12.45 per share, after disclosure of the accounting irregularities.
Plaintiff seeks to recover damages on behalf of the Class and is
represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York, San Francisco, Chicago and New Jersey, has many years of experience in
prosecuting investor class actions and actions involving financial fraud. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.KaplanFox.com.
If you are a member of the Class, you may move the court no later
than June 19, 2001, 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 have any questions about this Notice, the action, your
rights, or your interests, please e-mail us at mail@KaplanFox.com or contact:
Frederic S. Fox, Esq.
Adam Walsh, Esq.
Kaplan Fox & Kilsheimer LLP
805 Third Avenue - 22nd Floor
New York, NY 10022
Fax: (212) 687-7714
E-mail address: mail@KaplanFox.com
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