NEW YORK, April 10, 2002 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Eastern District of New York, civil action number 02 cv 2160, on behalf of all persons or entities who purchased Gilat Satellite Networks Ltd. ("Gilat" or the "Company") common stock (Nasdaq:GILTF) between November 13, 2000 and October 2, 2001, both dates inclusive (the "Class Period"). The Complaint alleges that defendants violated Section 10(b) and 20(a) of the Securities and Exchange Act of 1934 by issuing a series of materially false and misleading statements about the Company's financial results.
Specifically, the Israel-based Gilat Satellite Networks, Ltd. knew or recklessly disregarded, yet covered up the fact, that the demand for and acceptance of Gilat's products and the products of its subsidiary, StarBand Communications, Inc., were greatly overstated, that Gilat was having difficulty manufacturing and selling its chief product, Very Small Aperture Terminal (VSAT) profitably, that Gilat's purported gross profit margins were false, that Gilat was materially understating its costs and expenses and that Gilat, accordingly, would have to take massive charge-offs, numbering in the hundreds of millions of dollars in the future. Plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements caused Gilat's stock price to become artificially inflated, inflicting enormous damages on investors
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin & Peckel at www.rabinlaw.com.
If you purchased Gilat common stock during the Class Period described above, you may, no later than May 10, 2002, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. If you wish to discuss this action further or have any questions concerning this announcement, or your rights or interests, please contact plaintiff's counsel, Eric Belfi or Maurice Pesso, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca