This is a securities fraud class action lawsuit brought against Pall Corp. and certain of its officers and directors.
Pall, together with its subsidiaries, manufactures and markets filtration, purification, and separation products and integrated systems solutions worldwide.
The class action complaint alleges that, during the Class Period, Pall issued materially false and misleading statements that misrepresented and failed to disclose:
(i) that Pall was materially overstating its financial results by understating its tax liability for taxes;
(ii) that Pall's reported effective tax rate was materially inaccurate as Pall was materially understating its tax liability as it has now admitted; and
(iii) based on the foregoing, Pall's financial statements were not prepared in accordance with GAAP and were, therefore, materially false and misleading.
The class action complaint further alleges that on July 19, 2007, after the markets closed, Pall announced that the Audit Committee of its Board of Directors had commenced an inquiry into a possible material understatement of U.S. income tax payments and of its provision for income taxes in certain prior periods beginning with fiscal year ended July 31, 1999. In response to this announcement, the price of Pall common stock declined from $48.78 per share to $41.11 per share, over 15%, on unusually high trading volume. Then, on August 2, 2007, Pall announced that its financial statements for fiscal years 1999 through 2006 and for each of the fiscal quarters ended October 31, 2006, January 31, 2007, and April 30, 2007 "should no longer be relied upon and that a restatement of some or all of those financial statements will be required." Furthermore, Pall reported that the Company could owe up to $130 million in back taxes not including interest and penalties.
Upon this news, shares of the Company's stock fell $1.21 per share, or 3%, to close at $39.90 per share, on heavy trading volume.
Name (Stock Symbol)
Pall Corporation (PLL)
Pall Corporation engages in the manufacture and marketing of filtration, purification, and separation products and systems.
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