A class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of persons who acquired the securities of HPL Technologies, Inc. (NASDAQ:HPLA) between October 2, 2001 and July 19, 2002 (the "Class Period").
The complaint alleges that HPL and certain of its officers and directors violated the federal securities laws by filing false financial revenues with the SEC for the three fiscal quarters covered in the Class Period. The complaint alleges that, even though Defendants knew or should have known that these revenues were improperly recognized, they not only filed the false 10-Q's but reiterated these artificially inflated revenues in a series of false and misleading statements to the media and the investing community throughout the Class Period.
The Company has initiated an investigation into these "irregularities" and has removed CEO David Lepejian and CFO Ita Geva from their positions. Lepejian and Geva are both named as defendants in the lawsuit.
As soon as this news was disclosed on July 19, trading was halted on HPL stock, but share prices dropped by 70% in pre-market trading.

Update

This case has been settled. The Claims Administrator for this litigation is Gilardi & Co. LLC. The deadline for submitting a proof of claim was February 7, 2005. If you would like further information about the settlement or would like to download the Notice of Pendency and Settlement of Class Action and Settlement Hearing, please go to www.gilardi.com or call (415) 461-0410.

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