Shareholder Class Action Filed Against Syntax-Brillian Corp. by the Law Firm of Schiffrin Barroway Topaz & Kessler, LLP
Thursday December 13, 6:00 pm ET .

The Complaint charges Syntax and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Syntax is engaged in designing, developing and distributing high-definition televisions, liquid crystal display and liquid crystal on silicon technologies. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company was suffering from severe credit constraints; (2) that the Company lacked adequate working capital to sufficiently keep pace with demand for its products; (3) that the Company had experienced increasing difficulty in collecting its outstanding receivables, particularly from its Asian distributor; (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the foregoing, the Company's statements about its financial well- being and future business prospects were lacking in any reasonable basis when made.

On September 12, 2007, the Company provided its business outlook for Fiscal 2008. Citing a "tighter credit environment in Asia," the Company stated that it anticipated revenue in the range of $170 million to $180 million for the fiscal first quarter. Later on September 12, 2007, the Company announced that its Chief Executive Officer ("CFO") was resigning. Then on September 13, 2007, the Company shocked investors when it filed its 2007 Annual Report and disclosed that it possessed a number of internal control deficiencies. These "material weaknesses" included the Company's controls over the inventory process, its revenue recognition process, and its income tax provision process. The Company further admitted that together these control deficiencies "result in more than a remote likelihood that a material misstatement to our annual or interim financial statements could occur and not be prevented or detected in a timely manner." Additionally, the Company's independent accounting firm identified a number of adjustments, in addition to those related to the material weaknesses identified above. As a result, the accounting firm concluded that "because of the effect of the material weaknesses," the Company "has not maintained effective internal control over financial reporting as of June 30, 2007." On this news, the Company's shares fell $2.12 per share, or over 34.5 percent, to close on September 13, 2007 at $4.01 per share, on unusually heavy trading volume.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.