June 24, 2002 – Oak Ridge, TN – Flextronics International Ltd. shareholders have sued the contract electronics manufacturer, saying it misled them by failing to disclose restructuring charges and a drop in sales, their law firm said.
Milberg Weiss Bershad Hynes & Lerach said the three top executives of Flextronics are also defendants in the action against the company, reported Reuters.
The suit, filed in federal court in New York on June 12 and seeking class-action status, covers investors who bought the stock between Oct. 2 and June 4.
Flextronics shares lost about 17% in that time.
The law firm alleges the company failed, during the period, to disclose declining sales, its customers’ financial difficulties, and the need for and size of further restructuring charges.
On June 3, Flextronics said it would miss Wall Street estimates for the June and September quarters because of weaker than expected demand for data networking and telecom products.
The company said it could improve its results by as much as $0.12/share in each quarter from further restructuring efforts. It has taken millions of dollars in restructuring charges in past quarters as it resizes amid a slow economic recovery.
A Flextronics spokeswoman said the company does not comment on pending litigation as a matter of policy.
Also named in the suit were CEO Michael Marks, CFO Robert Dykes, and COO Michael McNamara.