RADNOR, Pa., June 20 LAWFUEL – Press release service – The following statement was issued
today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the
United States District Court for the District of Arizona on behalf of all
securities purchasers of CSK Auto Corporation (NYSE: CAO) (“CSK Auto” or
the “Company”) from June 4, 2003 through April 13, 2006, inclusive (the
“Class Period”).
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 Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard
A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via
e-mail at info@sbclasslaw.com.
The Complaint charges CSK Auto and certain of its officers and
directors with violations of the Securities Exchange Act of 1934. 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
improperly accounted for inventories and vendor allowances; (2)
specifically, that the Company overstated its in-transit inventory,
improperly included certain costs in its inventory, and improperly refunded
or wrote off certain vendor allowance receivables; (3) that the Company’s
financial statements were presented in violation of Generally Accepted
Accounting Principles; (4) that the Company lacked the necessary personnel
and controls to issue accurate financial reports and projections; and (5)
that, as a result of the foregoing, the Company’s financial results were
materially overstated at all relevant times.
On March 27, 2006, before the market opened, CSK Auto shocked investors
when it announced the postponement of its scheduling of a date for release
of its fourth quarter and fiscal 2005 financial results and related
investor call. The Company stated that the postponement was being made to
provide adequate time for the Company and the Audit Committee of the Board
of Directors of the Company to conduct a thorough review of certain
accounting errors and irregularities discovered in the course of the
Company’s ongoing assessment of internal control over financial reporting
required under Section 404 of the Sarbanes-Oxley Act of 2002 and an
internal audit. On this news, shares of the Company’s stock fell $1.26 per
share, or 7.9 percent, to close, on March 27, 2006, at $14.64 per share, on
unusually heavy trading volume.
On April 14, 2006, before the market opened, CSK Auto further stunned
investors when it announced that, pending the completion of the previously
announced investigation by the Audit Committee of the Company’s Board of
Directors into certain accounting errors and irregularities, the Company
was delaying filing its annual report with the SEC for the fiscal year
ended January 29, 2006. On this news, shares of the Company’s stock shed an
additional 70 cents per share, or 5.1 percent, to close, on April 17, 2006,
at $13.06 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, which prosecutes class
actions in both state and federal courts throughout the country. Schiffrin
& Barroway 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. For more information
about Schiffrin & Barroway, or to sign up to participate in this action
online, please visit http://www.sbclasslaw.com.
If you are a member of the class described above, you may, not later
than August 8, 2006, move the Court to serve as lead plaintiff of the
class, if you so choose. 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
Schiffrin & Barroway, or other counsel of your choice, to serve as your
counsel in this action.
CONTACT: Schiffrin & Barroway, LLP
Darren J. Check, Esq.
Richard A. Maniskas, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll-free) or 1-610-667-7706
Or by e-mail at info@sbclasslaw.com
