Stull, Stull & Brody Announces Class Action Against Gerber Scientific, Inc

Business Wire, May 1, 2002

Business Editors & Legal Writers

NEW YORK--(BUSINESS WIRE)--May 1, 2002

Notice is hereby given that a class action lawsuit was filed on April 30, 2002 in the United States District Court for the District of Connecticut, on behalf of purchasers of the securities of Gerber Scientific, Inc. ("Gerber Scientific" or the "Company) (NYSE:GRB) between May 27, 1999 and April 12, 2002, inclusive (the "Class Period") against defendants Gerber Scientific, Inc. and certain of its officers, including Michael J. Cheshire, Marc T. Giles, George M. Gentile, Shawn M. Harrington, Gary K. Bennett and Anthony L. Mattacchione.

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 between May 27, 1999 and April 12, 2002, thereby artificially inflating the market price of the Company's securities.

Specifically, the complaint alleges that, throughout the Class Period, defendants issued statements regarding Gerber Scientific's quarterly and annual financial performance and filed reports confirming such performance with the United States Securities and Exchange Commission ("SEC"). The complaint alleges that these statements were materially false and misleading statements because, among other things, (i) the Company was employing improper inventory and reserve accounting practices in violation of Generally Accepted Accounting Principles. As a result, the Company's operating results were materially misrepresented and overstated; (ii) the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iii) based on the foregoing, defendants' statements concerning the prospects of Gerber Scientific were lacking in a reasonable basis at all times.

On April 15, 2002, before the market opened, Gerber Scientific announced that it expected to take a $12 million pre-tax charge in its fiscal fourth quarter, the period ending April 30, 2002. Additionally, Gerber Scientific announced that, in response to an investigation by the SEC into its inventory and reserve accounting practices, it was conducting an internal review of its financial reporting for the period January 1, 1998 through April 30, 2002. The Company further stated that its investigation is ongoing and once it has been completed, the Company will likely restate its financial results for the appropriate periods. In response to the Company's announcements, the price of Gerber Scientific common stock declined to $6.99 per share, a decline of more than 71% from a Class Period high of $24.50 per share, reached on July 6, 1999.

If you purchased Gerber Scientific securities between May 27, 1999 and April 12, 2002, inclusive, you may, no later than June 17, 2002, request the Court appoint you as lead plaintiff.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at SSBNY@aol.com, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017.