SOURCE: Stull, Stull & Brody

January 30, 2006 12:58 ET

Stull, Stull & Brody Announces Class Action Against Amkor Technology, Inc.

NEW YORK, NY -- (MARKET WIRE) -- January 30, 2006 -- Notice is hereby given that a class action has been commenced in the United States District Court for the Eastern District of Pennsylvania on behalf of all securities purchasers of Amkor Technology, Inc. (NASDAQ: AMKR) ("Amkor" or the "Company") from October 27, 2003 through July 1, 2004 inclusive (the "Class Period").

Stull, Stull & Brody has substantial experience representing employees who suffered losses from purchases of their employer's stock in their 401(k) plans. If you bought Amkor's stock through your Amkor retirement account and have information or would like to learn more about these claims, please contact us.

The complaint charges Amkor and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Amkor operates as a subcontractor of semiconductor packaging and test services worldwide. It offers traditional packaging, which includes traditional lead frame products; and advanced packaging, which includes advanced lead frames and laminate products. The complaint alleges that defendants issued a series of false and misleading statements to the market artificially inflating the Company's stock. As a consequence of the Company's material inflation of its stock price, the Defendants were able to raise $152 million in a secondary offering and to complete a $250 million note offering. More specifically, the Defendants failed to disclose the following materially adverse facts to be market: (1) that the Company was shipping inventory to customers far in excess of customer demand; (2) as a result of this deliberate channel stuffing, the Company undermined the future demand for its products; (3) that the Company's profit margins were significantly and negatively impacted by the rapidly rising material costs; and (4) that as a consequence of the foregoing, the Company's positive statements about its condition and future prospects were lacking in a reasonable basis.

On April 27, 2004, Amkor announced that the Company was experiencing weakness for its cellphone products. On this news, shares of Amkor fell $4.26 per share, or 31.74 percent, to close, on April 27, 2004, at $9.16 per share. Following this disclosure, on July 1, 2004, Amkor announced that it failed to meet its expected guidance for net income in the second quarter of 2004. On this news, shares of Amkor fell $2.39 per share, or 20.22 percent, to close, on July 1, 2004, at $5.79 per share. Then, on August 22, 2005, Amkor announced that the SEC issued a former order of investigation concerning certain trading in Amkor securities.

If you are a member of the class, you may request that the Court appoint you as lead plaintiff by no later than March 24, 2006. 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. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in both New York and Los Angeles.

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 e-mail at, by calling toll-free 1-800-337-4983, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at

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