Law Firm Scott + Scott, LLC Announces Class Action Lawsuit Against Gerber Scientific, Inc

Business Wire, May 8, 2002

Business Editors & Legal Writers

COLCHESTER, Conn.--(BUSINESS WIRE)--May 8, 2002

SCOTT SCOTT, LLC (http://www.scott-scott.com )(e-mail: nrothstein@scott-scott.com), a Connecticut-based law firm with offices outside of Philadelphia, filed a class action lawsuit on April 18, 2002, 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.

A copy of the complaint filed in this action is available from the Court or can be obtained from our website at http://www.scott-scott.com , or you can call our office at 800-404-7770.

The action is pending in the United States District Court, District of Connecticut, Hartford, Connecticut against defendants Gerber Scientific, 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 price of Gerber Scientific securities. Throughout the Class Period, as alleged in the complaint, 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 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 bought the securities of Gerber Scientific between May 27, 1999 and April 12, 2002 and you wish to serve as lead plaintiff, you are required to move to do so with the Court no later than June 17, 2002. If you would like to discuss this action or have any questions concerning this notice or your rights or interests, please contact Scott Scott lawyers, Neil Rothstein ( nrothstein@scott-scott.com), David R. Scott (drscott@scott-scott.com) or James E. Miller (jmiller@scott-scott.com) by e-mail or by phone at 800-404-7770. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

Scott Scott, LLC is a Connecticut based law firm engaged in the representation of funds, foundations, endowments, institutions, pension funds, individuals and other entities throughout the world in securities antitrust and other complex class and non-class action litigation. The firm is committed to client satisfaction and communication. The firm's attorneys litigate in both state and federal courts throughout the nation. The firm has been appointed "lead counsel" on cases nationwide.