Scott + Scott, LLC Filed First Class Action Lawsuit Against Cray Inc. on May 25, 2005; Set to File for Leadership on July 25
16 Julio 2005 - 2:49PM
PR Newswire (US)
Scott + Scott, LLC Filed First Class Action Lawsuit Against Cray
Inc. on May 25, 2005; Set to File for Leadership on July 25 Stock
Falls to $1.30 While Company Hires New Independent Auditor SAN
DIEGO, July 16 /PRNewswire/ -- Scott + Scott, LLC
(http://www.scott-scott.com/), which filed a class action in the
United States District Court for the District of Washington on
behalf of the purchasers of Cray Inc. (Nasdaq: CRAYE; "Cray" or the
"Company") securities between July 31, 2003 and May 12, 2005,
inclusive (the "Class Period"), intends to move the Court for lead
plaintiff/lead counsel on July 25, 2005. Cray Inc. is engaged in
the design, development, marketing and support of high-performance
computer systems, commonly known as supercomputers. If you wish to
discuss this action or have questions concerning this notice or
your rights, contact Scott + Scott attorneys Neil Rothstein (;
619-251-0887 (cellular)) or Amy Saba (; 800-332-2259). The
complaint alleges that Cray's manufacturing processes, internal
controls and testing were flawed and ineffective and that Cray's
own auditors and Audit Committee knew of the flawed and ineffective
internal controls. Further, the complaint alleges that unknown to
investors delays in inventory recognition realization and revenue
were a recurring and unpredictable feature of Cray's business
model. Additionally, it is alleged that during the Class Period,
Cray failed to disclose and misrepresented that business metrics
having a direct bearing on revenue recognition were increasingly
unfavorable and unlikely to improve anytime soon. On May 9, 2005,
Cray revealed that it had failed to include an auditor's opinion on
management's assessment of internal control over financial
reporting. Moreover, Cray continued to report revenue results
adversely impacted by faulty internal controls and past quarter
practices. Cray's stock price, which was as high as $13.49 during
the Class Period closed on May 12, 2005 at $1.34. On July 1, 2005,
Cray issued a Form 8-K stating that it had hired a new independent
auditor. Signing with this law firm does not make you a lead
plaintiff. It does, however, confer upon the client certain
benefits such as updates on litigation and attorney contact. The
firm is currently litigating major securities, antitrust and
employee retirement plan cases throughout the United States and
represents pension funds, charities, foundations, individuals and
other entities worldwide. Other cases recently filed by Scott +
Scott, LLC include Harley-Davidson, Brocade, DreamWorks, Guidant
and more. Scott + Scott, LLC is based at 108 Norwich Avenue,
Colchester, CT 06415; phone: 860/537-3818; fax: 860/537-4432.
DATASOURCE: Scott + Scott, LLC CONTACT: Neil Rothstein of Scott +
Scott, LLC, +1-619-251-0887 Web site: http://www.scott-scott.com/
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