Nam Tai update on the putative class action
Jul 29, 2005
Nam Tai Electronics, Inc. ("Nam Tai" or the "Company") (NYSE: NTE) (Symbol: NTE) announced that oral argument was heard on July 26, 2005, on Lead Plaintiff Douglas Ward's Motion for Certification as Class Representative and Appointment of Class Counsel ("the Motion") in the consolidated action entitled Michael Rocco v. Nam Tai Electronics, Inc. et al., Civil Action No. 03-CV-1148 ("the Rocco Action"). The Motion seeks to certify the Rocco Action as a class action, naming Lead Plaintiff Douglas Ward class representative, and appointing the law firm of Lerach Coughlin Stoia Geller Rudman & Robbins LLP as Lead Class Counsel. The Company opposes the Motion. The Court reserved judgment on the Motion at the conclusion of the oral argument, and the Company anticipates a written ruling from the Court in the months to follow.
The initial complaint in the Rocco Action was filed on February 20, 2003. In July 2003, this initial complaint was consolidated with another complaint filed in April 2003 captioned A.J. & Celine Steigler v. Nam Tai Electronics, Inc. et al. The consolidated complaint was filed in July 2003 on behalf of a putative class of persons who purchased the common shares of Nam Tai from July 29, 2002 through February 18, 2003. The consolidated complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and alleges that material misrepresentations and/or omissions were made during the alleged class period concerning the partial reversal of an inventory provision and a charge to goodwill related to a corporate transaction involving Nam Tai.
Nam Tai believes the Rocco Action to be wholly without merit and intends to defend the case vigorously to protect its name and the interests of its shareholders.