In Re Remec Inc. Securities Litigation

ORDER GRANTING MOTION TO DISMISS; GRANTING LEAVE TO AMEND

Defendants Remec, Inc., Ronald E. Rag-land, and Winston E. Hickman move to dismiss Plaintiffs federal securities complaint. Plaintiff opposes the motion. For the reasons set forth below, the motion to dismiss is granted with 20 days leave to amend from the date of entry of this order.

BACKGROUND

Lead Plaintiff, the Cuvelier Group, alleges that Defendants Remec, Inc. (“Re-mec”), its CEO Ronald E. Ragland (“Rag-land”), and its CFO Winston E. Hickman (“Hickman”) violated the federal securities laws by issuing a series of knowingly false statements concerning Remec’s financial results during the Class Period of September 8, 2003 through September 8, 2004.

Remec is a designer and manufacturer of high frequency subsystems used to transmit voice, video and other data over wireless communications networks and in space and national defense applications. (Consolidated Amended Complaint (“CAC”) ¶ 2). The Class Period begins on September 8, 2003 when Remec announced its second quarter 2004 results, for the period ending August 1, 2004. Remec announced increased six month revenue $167.5 million compared to $112.6 million in the same…