CONSHOHOCKEN, Pa.- LAWFUEL – The Law News Network – Dec. 20, 2005–Goldman Scarlato & Karon, P.C., a law firm with offices in Pennsylvania and Ohio, announces that a lawsuit has been filed in the United States District Court for the District of Minnesota, on behalf of persons who purchased or otherwise acquired publicly traded securities of Nash Finch Company (“Nash Finch” or the “Company”) (NASDAQ:NAFC) between February 24, 2005 and October 20, 2005, inclusive, (the “Class Period”). The lawsuit was filed against Nash Finch and certain officers and directors (“Defendants”).
If you are a member of this class and wish to view a copy of a complaint and join this class action, please e-mail us at [email protected] and request a copy of the complaint and a plaintiff certification. If you are a member of the Class, you may move the Court no later than February 17, 2006 to serve as a lead plaintiff for the Class. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that Nash Finch made a series of false and misleading statements with respect to the acquisition of Roundy’s, a food distributor. These statements were false and misleading because Defendants knew or recklessly disregarded that Nash Finch was operating well below expectations, that the Company had under-reserved for the Roundy’s acquisition, and that the integration of Roundy’s was not going according to plan.
On October 20, 2005, Nash Finch issued a press release announcing lower fiscal 2005 earnings guidance of $3.00 to $3.25 per share, versus its original expectations of $3.70 to $3.89 per share. The Company attributed the lower guidance to a decline in retail gross margins and inadequate execution of pricing across its retail operations and higher than expected acquisition integration costs. In reaction to the news, Nash Finch shares tumbled $12.76 per share, or 28.6% to close at $30.04 on October 21, 2005.
If you bought Nash Finch securities between February 24, 2005 and October 20, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (888) 753-2796 to speak with an advisor.List your legal jobs on the LawFuel Network