FARO Technologies (NASDAQ:FARO)
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Goldman Scarlato & Karon, P.C., a law firm with offices
in Conshohocken, PA and Cleveland, OH announces that a lawsuit has
been filed in the United States District Court for the Middle District
of Florida, on behalf of persons who purchased or otherwise acquired
publicly traded securities of FARO Technologies Inc. ("FARO" or the
"Company") (NASDAQ:FARO) between May 6, 2004 and November 3, 2005,
inclusive, (the "Class Period"). The lawsuit was filed against FARO
and certain officers and directors ("Defendants").
If you are a member of this class and wish to view a copy of a
complaint and join this class action, please e-mail us
info@gsk-law.com and request a copy of the complaint and a plaintiff
certification. If you are a member of the Class, you may move the
Court no later than February 6, 2006 to serve as a lead plaintiff for
the Class. Any member of the purported class may move the Court to
serve as lead plaintiff through counsel of their choice, or may choose
to do nothing and remain an absent class member. However, if you
choose to remain an absent class member, unless and until a class is
certified, you are not represented by counsel.
The complaint alleges that Defendants violated Sections 10(b) and
20(a) of the Securities Exchange Act of 1934 and Rule 10b-5
promulgated thereunder. Specifically, the complaint alleges that FARO
repeatedly issued false and misleading quarterly and annualized
financial guidance during the Class Period in reckless disregard of
the Company's deficient internal control systems. The complaint
alleges that FARO represented itself as having implemented lean
manufacturing principles that had brought about numerous operating and
efficiency improvements in its production capacity. However, theses
statements were materially false and misleading because the Company's
internal inventory and accounting controls were defective during the
class period.
On November 3, 2005, investors learned the truth regarding the
adverse impact of the Company's deficient control systems and poor
financial performance. After the market closed, the Company disclosed
that it had incurred $1.6 million in inventory costing and consumption
variances due to processing problems related to the implementation of
a new ERP system. As a result of this disclosure, FARO stock fell
$5.88 per share to close at $16.50 per share on November 7, 2005.
If you bought FARO securities between May 6, 2004 and November 3,
2005, inclusive, and would like to obtain information about the
lawsuit, then you are invited to call (888) 753-2796 to speak with an
advisor.