COLCHESTER, Conn., April 27 /PRNewswire/ — Scott + Scott, LLC, ([email protected] or www.scott-scott.com) a Connecticut law firm with offices in Ohio and California, announced that it filed a class action in the United States District Court for the Southern District of Florida yesterday on behalf of purchasers of securities of Spear & Jackson, Inc. (OTC: SJCK.OB – News) during the period between May 28, 2003 and April 15, 2004 (the “Class Period”). This complaint also pleads claims against the Spear & Jackson auditor, Sherb & Co. LLP. If you would like additional information regarding this lawsuit, please contact Scott + Scott attorney Neil Rothstein ([email protected]) at 800/404-7770 or 860/537-3818 (EST) or 800/332- 2259 or 619/233-4565 (PST).
The complaint charges Spear & Jackson, certain of its officers and directors, PNC Tools Holdings LLC and auditors Sherb & Company LLP with violations of the Securities Exchange Act of 1934. Spear & Jackson manufactures and distributes tools, garden tools, metrology equipment, woodworking tools and magnetic equipment.
The complaint alleges that during the Class Period defendants disseminated materially false and misleading information to the investing public that artificially inflated Spear & Jackson’s share price. Allegations in the complaint, the truth which was known by the defendants but concealed from the investing public during the Class Period, were that defendants implemented a scheme to manipulate the share price of Spear & Jackson stock by issuing false information to inflate the price of Spear & Jackson stock to registered representatives and broker-dealers, that defendants used companies based in the British Virgin Islands to obtain over 1.2 million shares of Spear & Jackson stock during 2002, some of which was obtained through the filing of a fraudulent Form S-8 registration statement, that the Company’s repurchase of shares was not in compliance with applicable rules, that the Company never had any intention of making open market purchases as suggested in its January 16, 2004 release, and that the Company was not on track to achieve earnings of $0.50 to $0.55 per share for 2004.
As a result of the defendants’ false statements, Spear & Jackson’s stock price traded at inflated levels during the Class Period, increasing to as high as $9.55 on July 15, 2003, whereby the Company’s top officers and directors sold more than $3 million worth of Spear & Jackson stock. On April 16, 2004, it was announced that U.S. securities regulators had sued Spear & Jackson Chief Executive Dennis Crowley, alleging he used false information to boost the Company’s stock price while secretly selling millions in shares. Spear & Jackson shares fell $0.52 to $1.85 on this news. If you bought the securities of Spear & Jackson between May 28, 2003 and April 15, 2004, inclusive and sustained damages, you may, no later than June 19, 2004 move for appointment of “lead plaintiff.” Signing a certification with Scott + Scott, LLC will not avail a shareholder to being submitted as a lead plaintiff without further consultation and without adequately qualifying for that position. Further information can be obtained from the firm.
Scott + Scott, LLC, a Connecticut-based law firm with offices in Ohio and California, is a law firm with a national practice and reputation. Scott + Scott has dedicated itself to client communication and satisfaction. The firm is currently litigating major securities, antitrust and employee retirement plan cases throughout the United States and represents pension funds, charities, foundations, individuals and other entities worldwide — in both class and non-class cases. Please visit our website at www.scott-scott.com to learn more about the firm, its practice and other cases. Scott + Scott, LLC has recently filed or is investigating securities cases against Nortel Networks Corporation, Global Crossing, Canadian Superior Energy, Novastar Financial, Inc. and others.
If you wish to discuss this action with an attorney or have any questions concerning this notice, your rights or any matter within our expertise, please contact attorney Neil Rothstein at [email protected] or by calling 1- 800-332-2259. Scott + Scott, LLC is located at 108 Norwich Avenue, Colchester, CT 06415; phone: 860/537-3818; fax: 860/537- 4432. This release is issued in accordance with the applicable federal law of the United States.