Spector, Roseman & Kodroff, P.C. Files Class Action Suit Against Keithley Instruments, Inc.

Apr 13, 2001, 01:00 ET from Spector, Roseman & Kodroff, P.C.

    PHILADELPHIA, April 13 /PRNewswire/ -- The law firm of Spector, Roseman &
 Kodroff, P.C. announces that a class action lawsuit has been commenced in the
 United States District Court for the Northern District of Ohio against
 defendants Keithley Instruments, Inc. ("Keithley" or the "Company")
 (NYSE:   KEI), and Joseph P. Keithley, Chairman, President, and Chief Executive
 Officer, on behalf of purchasers of the stock of Keithley during the period
 from January 18, 2001 through March 9, 2001, inclusive, (the "Class Period").
     The complaint alleges that defendants violated Sections 10(b) and 20(a) of
 the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by
 issuing a series of material misrepresentations to the market during the Class
 Period regarding the demand for the Company's products and its expected
 revenues.  Specifically, defendants stated that they anticipated that second
 quarter revenues would exceed those of the first quarter, in part, because of
 strong demand for the Company's products and the Company's record backlog.  As
 alleged in the complaint, these statements were false and misleading when made
 because defendants knew that Keithley was suffering from reduced new equipment
 orders, delays in scheduled deliveries and, with respect to semiconductor
 customers, canceled orders, all of which would lead to reduced sales and
 earnings in the second quarter of 2001.  As further alleged in the complaint,
 defendants' statements that Keithley's backlog was sufficiently large to
 overcome any softness in the economy and would lead to increased sales and
 earnings for the second quarter of 2001 were also materially false and
 misleading because defendants knew but did not disclose that the backlog was
 not a true measure of sales revenue because the backlog was subject to
 cancellation or delayed shipment at the "buyer's" discretion.
     Finally, on March 12, 2001, before the market opened for trading,
 defendants issued a press release announcing that sales and earnings for the
 first quarter of 2001 would be less than expected and 25% below the sales
 levels of the first quarter of 2001.  The market's reaction to this
 announcement was immediate and punitive.  Shares of Keithley stock closed on
 Monday, March 12, 2001, at $14.95, from a previous close on Friday, March 9,
 2001, of $20.76, on reported volume of approximately 2.2 million shares.
 Prior to this disclosure, defendant J. Keithley sold shares of Keithley stock
 for proceeds of approximately $3.2 million, while other insiders sold shares
 for proceeds in excess of $5 million.
     If you purchased Keithley securities during the Class Period, you may, no
 later than May 25, 2001, move to be appointed as a Lead Plaintiff in this
 class action.  A Lead Plaintiff is a representative, chosen by the Court, that
 acts on behalf of other class members in directing the litigation.  The
 Private Securities Litigation Reform Act of 1995 directs Courts to assume that
 the class member(s) with the "largest financial interest" in the outcome of
 the case will best serve the class in this capacity.  Courts have discretion
 in determining which class member(s) have the "largest financial interest,"
 and have appointed Lead Plaintiffs with substantial losses in both absolute
 terms and as a percentage of their net worth.  If you have sustained
 substantial losses in Keithley securities during the Class Period, please
 contact Spector, Roseman & Kodroff, P.C. at classaction@spectorandroseman.com
 for a more thorough explanation of the Lead Plaintiff selection process.  If
 you have relatively small losses, your ability to participate in any recovery
 will be protected by the Lead Plaintiff(s), and you need take no affirmative
 steps at this time.
     If you wish to discuss this action or have any questions concerning this
 notice or your rights or interests, please contact plaintiff's counsel Robert
 M. Roseman toll-free at 888-844-5862 or via E-mail at
 classaction@spectorandroseman.com.  For more detailed information about the
 firm please visit its website at http://www.spectorandroseman.com.
     Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania
 and San Diego, California, concentrates its practice in complex litigation
 including actions dealing with securities laws, antitrust, contract and
 commercial claims.  The firm is active in major litigation pending in federal
 and state courts throughout the United States.  The firm's reputation for
 excellence has been recognized on repeated occasions by courts which have
 appointed the firm as lead counsel in numerous major class actions involving
 violations of the federal securities laws and the federal antitrust laws, and
 consumer fraud.  As a result of the efforts of the firm, and its members,
 hundreds of millions of dollars have been recovered on behalf of thousands of
 defrauded shareholders and companies.
 
 

SOURCE Spector, Roseman & Kodroff, P.C.
    PHILADELPHIA, April 13 /PRNewswire/ -- The law firm of Spector, Roseman &
 Kodroff, P.C. announces that a class action lawsuit has been commenced in the
 United States District Court for the Northern District of Ohio against
 defendants Keithley Instruments, Inc. ("Keithley" or the "Company")
 (NYSE:   KEI), and Joseph P. Keithley, Chairman, President, and Chief Executive
 Officer, on behalf of purchasers of the stock of Keithley during the period
 from January 18, 2001 through March 9, 2001, inclusive, (the "Class Period").
     The complaint alleges that defendants violated Sections 10(b) and 20(a) of
 the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by
 issuing a series of material misrepresentations to the market during the Class
 Period regarding the demand for the Company's products and its expected
 revenues.  Specifically, defendants stated that they anticipated that second
 quarter revenues would exceed those of the first quarter, in part, because of
 strong demand for the Company's products and the Company's record backlog.  As
 alleged in the complaint, these statements were false and misleading when made
 because defendants knew that Keithley was suffering from reduced new equipment
 orders, delays in scheduled deliveries and, with respect to semiconductor
 customers, canceled orders, all of which would lead to reduced sales and
 earnings in the second quarter of 2001.  As further alleged in the complaint,
 defendants' statements that Keithley's backlog was sufficiently large to
 overcome any softness in the economy and would lead to increased sales and
 earnings for the second quarter of 2001 were also materially false and
 misleading because defendants knew but did not disclose that the backlog was
 not a true measure of sales revenue because the backlog was subject to
 cancellation or delayed shipment at the "buyer's" discretion.
     Finally, on March 12, 2001, before the market opened for trading,
 defendants issued a press release announcing that sales and earnings for the
 first quarter of 2001 would be less than expected and 25% below the sales
 levels of the first quarter of 2001.  The market's reaction to this
 announcement was immediate and punitive.  Shares of Keithley stock closed on
 Monday, March 12, 2001, at $14.95, from a previous close on Friday, March 9,
 2001, of $20.76, on reported volume of approximately 2.2 million shares.
 Prior to this disclosure, defendant J. Keithley sold shares of Keithley stock
 for proceeds of approximately $3.2 million, while other insiders sold shares
 for proceeds in excess of $5 million.
     If you purchased Keithley securities during the Class Period, you may, no
 later than May 25, 2001, move to be appointed as a Lead Plaintiff in this
 class action.  A Lead Plaintiff is a representative, chosen by the Court, that
 acts on behalf of other class members in directing the litigation.  The
 Private Securities Litigation Reform Act of 1995 directs Courts to assume that
 the class member(s) with the "largest financial interest" in the outcome of
 the case will best serve the class in this capacity.  Courts have discretion
 in determining which class member(s) have the "largest financial interest,"
 and have appointed Lead Plaintiffs with substantial losses in both absolute
 terms and as a percentage of their net worth.  If you have sustained
 substantial losses in Keithley securities during the Class Period, please
 contact Spector, Roseman & Kodroff, P.C. at classaction@spectorandroseman.com
 for a more thorough explanation of the Lead Plaintiff selection process.  If
 you have relatively small losses, your ability to participate in any recovery
 will be protected by the Lead Plaintiff(s), and you need take no affirmative
 steps at this time.
     If you wish to discuss this action or have any questions concerning this
 notice or your rights or interests, please contact plaintiff's counsel Robert
 M. Roseman toll-free at 888-844-5862 or via E-mail at
 classaction@spectorandroseman.com.  For more detailed information about the
 firm please visit its website at http://www.spectorandroseman.com.
     Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania
 and San Diego, California, concentrates its practice in complex litigation
 including actions dealing with securities laws, antitrust, contract and
 commercial claims.  The firm is active in major litigation pending in federal
 and state courts throughout the United States.  The firm's reputation for
 excellence has been recognized on repeated occasions by courts which have
 appointed the firm as lead counsel in numerous major class actions involving
 violations of the federal securities laws and the federal antitrust laws, and
 consumer fraud.  As a result of the efforts of the firm, and its members,
 hundreds of millions of dollars have been recovered on behalf of thousands of
 defrauded shareholders and companies.
 
 SOURCE  Spector, Roseman & Kodroff, P.C.