Schatz & Nobel, P.C. Announces Class Action Lawsuit Against Herley Industries, Inc. -- HRLY
HARTFORD, Conn., June 16, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Herley Industries, Inc ("Herley" or the "Company") (Nasdaq:HRLY) between October 1, 2001 and June 14, 2006, inclusive (the "Class Period"). Also included are all those who purchased in a Secondary Offering around April 24, 2002.
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements concerning Herley's financial performance. Specifically, defendants failed to disclose the following: (i) that Herley's financial results were achieved through illegal conduct, including the misrepresentation of manufacturing costs on contracts with the U.S. Government and the falsification of a bid in order to win the award of a contract; (ii) that the Company lacked adequate internal controls; and (iii) that, as a result, Herley would likely be subject to enhanced governmental scrutiny, governmental fines, and the Company's ability to receive new contract awards from the U.S. Government would be in serious doubt.
