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Altera Corp (NASDAQ: ALTR), a maker of programmable
microchips, disclosed on June 21, 2006 that it expects to
restate its financial reports for the past decade to correct
errors related to how it accounted for stock option grants.
It is somewhat stunning, even in this age of corporate
improprieties, for a company to have to restate its financials
for ten years. And, of course, very troubling for Altera
shareholders.
Previously, on May 8, 2006, the Company disclosed an
internal investigation of its stock option grant policies.
Since that announcement, the SEC opened an informal
inquiry and the Company has received a subpoena from
the Justice Department.
But nevertheless, a ten-year restatement is shocking.
Investors who purchased Altera between August 10, 2001
and June 21, 2006, are affected.
Problems at Sunterra
On June 22, 2006, after the close of trading, Las Vegas-based
Sunterra (NASDAQ: SNRR), a vacation ownership company,
with properties in the U.S., Canada, Europe and the Caribbean,
disclosed a number of very troubling developments. First, it
disclosed that the Company’s Board of Directors directed that
the Company's President and Chief Executive Officer take paid
administrative leave pending the results of a previously
disclosed investigation into various allegations (including
accounting improprieties). These allegations were made by
an individual formerly employed by the Company's Spanish
operation. Second, the Company disclosed that its Executive
Vice President and Chief Financial Officer resigned from the
Company effective on June 30, 2006, and as its Chief Financial
Officer effective June 22, 2006.
Not surprisingly, Sunterra's shares plummeted after this
disclosure. Investors who purchased Sunterra between
January 2, 2003 and June 22, 200, are affected.
If you are a shareholder affected in these cases or any of the
situations listed below, you may wish to contact us at
info@securitiessleuth.com or 877.511.4717 to discuss your options.
Backdated Options. The backdated options scandal continues to
grow. In certain cases, these disclosures have been very damaging
to shareholders. Such companies include: Affiliated Computer
Services Inc. (NYSE: ACS), Power Integrations Inc. (NASDAQ: POWI),
American Tower Corp. (NYSE: AMT), Caremark Rx Inc. (NYSE: CMX),
CNET Networks (NASDAQ: CNET), F5 Networks Inc. (NASDAQ: FFIV),
Marvell Technology Group Ltd. (NYSE: MFE) and SafeNet Inc.
(NASDAQ: SFNT).
Herley Industries (NASDAQ: HRLY) On June 6, 2006, the Company
disclosed that the U.S. Attorney’s office in the E.D. of Pennsylvania
indicted the Company and its chairman on charges of fraud.
Investors who purchased between October 1, 2001 and
June 14, 2006, are affected.
Vonage Holdings Corp. (NYSE: VG) Allegedly, the Company violated
securities laws in connection with its IPO. Among other things, it
appears that the Company may have violated securities laws by
failing to include a prospectus with an offer to sell. On
May 24, 2006, the Company offered 31,250,000 shares at
$17 per share. The stock closed at $11.98 on June 2, 2006.
Xerium Technologies, Inc. (NYSE: XRM) It has been alleged that
the Prospectus and Registration Statement issued in connection
with the Company's IPO contained untrue statements of material
facts and omitted to state other facts necessary to make the
statements made not misleading. Specifically, among other
things, the Prospectus purported to warn about the potential
negative impact of its “Cost Reduction Programs,” but failed to
disclose that the Company's business was then being negatively
impacted by the Cost Reduction Programs and the loss of
business associated therewith. Investors who purchased
Xerium pursuant and/or traceable to the Company's IPO on
or about May 16, 2005 through November 15, 2005, are affected.
CSK Auto Corporation (NYSE: CAO) On March 26, 2006, the
Company indicated that it needed to conduct a thorough review
of certain accounting errors and irregularities discovered in the
course of its ongoing assessment of internal control over financial
reporting and an internal audit. Investors who purchased CAO
between September 2, 2004 and March 24, 2006, are affected.
Now with respect to settled cases. If you are an affected investor –
you purchased any of these stocks during the relevant class period,
you may wish to contact the claims administrator to obtain
additional information. Remember, if you don’t submit your claim
form, you won’t receive your share of any settlement.
Whitehall Jewellers (JWL)
Class Period: November 19, 2001 to December 10, 2003
Claims Deadline: August 14, 2006
Claims Administrator: Gilardi
Safety-Kleen Corp. (SK) (bonds)
Class Period: April 17, 1998 to March 5, 2000
Claims Deadline: June 5, 2006
Claims Administrator: Garden City
Information regarding other recent settled cases, including the
cases listed below, can be found at www.securitiessleuth.com.
ARM Financial Group, Inc. (ARMGQ)
Network Engines, Inc. (NENG)
Boston Chicken, Inc. (BOST)
Surebeam Corp. (SURE)
Salton, Inc. (SFP)
Bristol-Myers Squibb (BMY)
Royal Ahold N.V. (AHO)
Information regarding these settled cases can be found at
www.securitiessleuth.com.
Again you should contact the claims administrator (rather than us).
However, if you are an affected investor in any of the companies
under investigation, you many wish to contact us so that you can
consider your options.
Likewise, if you happen to be aware of corporate restatements
or other financial fraud -- especially if you're a victim -- you're
encouraged to contribute to the Sleuth by giving your own tip-offs
at www.securitiessleuth.com or by e-mailing info@securitiessleuth.com.
You can also call Mark McNair at 877-511-4717. If you have a friend
or colleague you think would benefit from The Sleuth, please pass
along this issue and ask them to sign up at
www.cartville.com/app/join.asp?MerchantID=47994.
Warmest regards,
Mark McNair
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