Pittsburgh Law Office of Alfred G. Yates Jr., PC Announces Class Action Suit Against Veeco Instruments, Inc. - VECO

Business Wire, March 24, 2005

PITTSBURGH -- Notice is hereby given by the Law Office of Alfred G. Yates Jr., PC that a class action lawsuit was filed on behalf of persons who purchased or otherwise acquired publicly traded securities of Veeco Instruments, Inc. ("Veeco" or the "Company") (NASDAQ:VECO) between November 3, 2003 and February 10, 2005, inclusive, (the "Class Period").

If you wish to serve as lead plaintiff, you must move the Court no later than April 18, 2005. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Alfred G. Yates, Jr. at 1-800-391-5164 or via e-mail at yateslaw@aol.com. 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.

The action, numbered 2:05-cv-01552-LDW-ETB, is pending in the United States District Court for the Eastern District of New York against defendants Veeco, Edward H. Braun and John F. Rein Jr. ("Defendants").

The complaint alleges that Defendants violated Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically the complaint alleges that Defendants materially misled the investing public by issuing false and misleading statements regarding the business and financial results of Veeco. More specifically, the complaint alleges that the Company's statements were false and misleading because Defendants knowingly or recklessly failed to disclose that it had improperly valued the inventory and accounts payable at its TurboDisc division in order to make the acquisition look more attractive to the market, that it falsely recognized revenue at TurboDisc during the class period, and that it improperly overvalued its deferred tax assets.

On February 11, 2005, Veeco announced that it was postponing the results of its financial results for the fourth quarter and full year 2004 pending completion of an internal investigation of improper accounting transactions at its TurboDisc division. The Company further expects that the investigation will lead to adjustments of the financial statements previously issued for the quarterly periods and nine-months ended September 2004. Shares of Veeco reacted negatively to the news, falling $1.83 per share, or approximately 10%, to $16.96 per share.