Goodkind Labaton Rudoff & Sucharow LLP Announces Class Action Lawsuit Filed Against Gerber Scientific Inc

Business Wire, May 16, 2002

Business Editors/Legal Writers

NEW YORK--(BUSINESS WIRE)--May 16, 2002

Goodkind Labaton Rudoff & Sucharow LLP announces that pursuant to Section 21D(a)(3)(A)(i) of the Securities Exchange Act of 1934, notice is hereby given that on May 10, 2002, a class action lawsuit was filed in the United States District Court, District of Connecticut, (the "Court"), on behalf of all open market purchasers of the common stock of Gerber Scientific Inc. ("Gerber" or the "Company") during the period of May 27, 1999 and April 12, 2002 inclusive (the "Class").

Excluded from the Class are Gerber and its affiliates.

The named Defendants are Gerber, Marc T. Giles, Michael J. Cheshire, George M. Gentile, Shawn M. Harrington, Anthony L. Mattacchione and Gary K. Bennett. The docket number of the case is 3:02CV816. The case has been assigned to the Honorable Judge Hall.

The Complaint charges Defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10(b)-5 promulgated thereunder.

Gerber is a global supplier of intelligent manufacturing systems. The Company provides industries with computer-based systems, equipment, software, and aftermarket supplies. The complaint alleges that between May 27, 1999 and April 12, 2002 (the "Class Period"), Gerber's business suffered from a combination of weakening currencies and implementation problems with new products. In an attempt to capture new markets, Gerber decided to diversify its business and undertook a campaign to acquire new companies. Pursuant to its acquisition campaign, Gerber secured credit facilities from institutions across the world. Despite Gerber's attempts to expand its business, the Company still suffered from weak demand for its products. However, in order to maintain favorable terms under the credit agreements, Gerber used false and misleading accounting techniques to obscure from creditors the true extent of the Company's faltering business plan, which misled investors who purchased the Company's common stock.

On April 15, 2002, Gerber announced in a press release it expected to take a special pre-tax charge of approximately $12 million in the fourth quarter ending April 30, 2002. The same day Gerber announced it was conducting an internal review of its financial reporting for the period beginning January 1, 1998, through the current fiscal year, which ends April 30, 2002. The Company announced the review had been undertaken in response to an investigation by the Securities and Exchange Commission ("SEC") into Gerber's inventory and reserve accounting practices. When news of the pre-tax charge and SEC investigation reached the market, investors reacted by rapidly selling the Company's stock, causing the price of that stock to fall dramatically.

Plaintiff seeks to recover damages and other relief on behalf of all members of the Class. Plaintiff is represented by the law firm of Goodkind Labaton Rudoff & Sucharow LLP of New York, New York and the law firm of Elias Alexiades, Esq., both firms with extensive experience prosecuting class actions on behalf of defrauded investors.

ANY MEMBER OF THE PROPOSED CLASS MAY MOVE THE COURT TO SERVE AS LEAD PLAINTIFF NO LATER THAN JUNE 17, 2002. IN ORDER TO SERVE AS LEAD PLAINTIFF, HOWEVER, YOU MUST MEET CERTAIN LEGAL REQUIREMENTS. These legal requirements include, but are not limited to, (1) filing a motion for the lead plaintiff position in response to this notice, and (2) having the largest financial interest in the relief sought by the Class as determined by the Court. However, the situation may arise where the person or entity with the largest financial interest in the relief sought by the Class is not otherwise qualified to act as lead plaintiff, and therefore the lead plaintiff may not necessarily have the largest financial interest in the relief sought by the Class.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, and/or if you would like a copy of the Complaint, you may, but are not required to, contact any of the following attorneys:

Emily C. Komlossy, Esq. (ekomlossy@glrslaw.com)
Henry J. Young, Esq. (hyoung@glrslaw.com)

GOODKIND LABATON RUDOFF
   & SUCHAROW LLP
100 Park Avenue, 12th Floor
New York, New York  10017-5563
Telephone: 212/907-0700

or

Elias A. Alexiades, Esq. (alexiades@mindspring.com)

The Law Firm of Elias A. Alexiades, Esq.
215 Church Street, 2nd floor
New Haven, CT  06510
Telephone: 203/777-4720

You can also learn about Goodkind Labaton Rudoff & Sucharow LLP and view a copy of the complaint by visiting our website at http://www.glrslaw.com