NEW YORK- Jan. 21, 2005 – LAWFUEL – The Law News Network -The law firm of Milberg Weiss Bershad & Schulman LLP announces that a class action lawsuit was filed on January 20, 2005, on behalf of purchasers of the securities of OfficeMax, Inc. (“OfficeMax” or the “Company”) (NYSE:OMX) (formerly Cascade Boise Corp.) between January 22, 2004 and January 11, 2005, inclusive (the “Class Period”) seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”).
The action is pending in the United States District Court For The Northern District Of Illinois against defendants Officemax, George Harad (Chairman), Christopher Milliken (“CEO”), and Ted Crumley (CFO). A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss’s website at: http://www.milbergweiss.com
The Complaint alleges that, during the Class Period, defendants made materially false and misleading statements with respect to OfficeMax’s financial performance and internal controls. OfficeMax was the third largest retailer and distributor of office supplies in North America, behind Staples (No. 1) and Office Depot (No. 2), with reported annual sales approaching $9 billion. On December 20, 2004, the Company announced that it had launched an internal investigation into vendor claims, “that certain employees acted inappropriately in requesting promotional payments and in falsifying supporting documentation for approximately $3.3 million in claims billed to the vendor by OfficeMax during 2003 and 2004.” (“Promotional payments” refers to payments from vendors for featuring the vendor’s products in ads or circulars and for other forms of product promotion.)
The Class Period ends on January 11, 2005. On that date, defendants announced that: (a) the Company’s recently appointed Chief Financial Officer, Brian Anderson, had resigned; (b) the Company was postponing the release of its earnings for the fourth quarter and full year 2004 pending the conclusion of an investigation into issues relating to its accounting for vendor income; (c) the company’s investigation had confirmed the claims by a vendor to its retail business that certain employees fabricated supporting documentation for approximately $3.3 million in claims billed to the vendor by OfficeMax during 2004 and 2003; (d) the Company was expanding its investigation into vendor rebates and revenue recognition; and (e) the Company had terminated four employees as a result of information discovered through its investigation. On this news, the Company’s stock fell $1.42, or 4.7%, to $28.88.
If you bought the securities of OfficeMax between January 22, 2004 and January 11, 2005, and sustained damages, you may, no later than March 14, 2005, request that the Court appoint you as lead plaintiff. 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 Milberg Weiss Bershad & Schulman LLP, or other counsel of your choice, to serve as your counsel in this action.
Milberg Weiss Bershad & Schulman LLP (http://www.milbergweiss.com) is a firm with over 100 lawyers with offices in New York City, Los Angeles, Boca Raton, Delaware, Seattle and Washington, D.C. and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others for nearly 40 years. Please contact the Milberg Weiss website for more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys:
