NEW YORK- LAWFUEL – The Law News Network – Jan. 23, 2006–Lasky & Rifkind, Ltd., a law firm with offices in New York and Chicago, announces that a lawsuit has been filed in the United States District Court for the Eastern District of Virginia, on behalf of persons who purchased or otherwise acquired publicly traded securities of The Mills Corp. (“Mills” or the “Company”) (NYSE: MLS) between August 14, 2003 and January 6, 2006, inclusive, (the “Class Period”). The lawsuit was filed against Mills and certain officers and directors.
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 March 20, 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. However, if you choose to remain an absent class member, unless and until a class is certified, you are not represented by counsel.
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 Defendants issued a series of false and misleading statements regarding the status of the Company’s pre-development projects, as well as its financial condition and the need to make further restatements. In particular, these statements were false and misleading because the Company misrepresented or failed to disclose that: (1) the Company’s accounting treatment with respect to its MEI subsidiary was inappropriate; (2) that the Company’s mismatched the accrual of its Long Term Incentive Plan (“LTIP”) liabilities with employee service periods; (3) that ten of the Company’s pre-development projects were failing and needed to be written-off; (4) that the Company’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”).
On October 31, 2005, Mills announced that it was moving its conference call to discuss its financial results for the third quarter because it needed additional time to “evaluate the accounting for several items.” Shares reacted negatively to the warning, falling $7.61 per share, or 14% to close at $45.68 per share. Then on November 9, 2005, Mills announced poor financial results, with Funds From Operations declining 35%, and announced numerous write offs for previously undisclosed projects. Shares again reacted negatively, falling from $41.92 per share to $39.50 per share, a decline of 5.7%. The Company also announced that several top-level executives, including its Chief Accounting Officer, Chief Operating Officer, and General Counsel had announced plans to leave the Company.
On January 6, 2006, after the market closed, Mills announced that it would be restating its financial results from 2000 through 2004, and the first nine months of 2005 primarily related to inappropriate accounting at its MEI subsidiary and to correct accounting for long term incentive compensation. In addition, the Company also announced that it would write-off ten pre-development projects, and would take a charge of $71 million. Shares of Mills reacted negatively to the news, falling from $42.23 on January 6, 2006 to $41.01, a decline of 2.8%.
If you bought Mills securities between August 14, 2003 and January 6, 2006, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (800) 495-1868 to speak with an advisor.