NEW YORK- May 24, 2004- LAWFUEL -The law firm of Milberg Weiss Bershad & Schulman LLP announces that a class action lawsuit was filed on May 20, 2004, on behalf of purchasers of the securities of Salton, Inc. (“Salton” or the “Company”) (NYSE: SFP) between November 11, 2002 and May 11, 2004, inclusive, (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”). A copy of the complaint filed in this action (numbered 04-C-3531) is available from the Court, or can be viewed on Milberg Weiss’ website at: http://www.milbergweiss.com
The action is pending in the United States District Court for the Northern District of Illinois, Eastern Division, against defendants Salton, Leonhard Dreimann (CEO, Director) and David M. Mulder (Chief Administrative and Senior Financial Officer).
The complaint charges defendants with violations of the Exchange Act. More specifically, the complaint alleges that Salton’s Class Period press releases and quarterly and annual reports filed with the SEC were materially false and misleading because they failed to disclose the following adverse factors (among others particularized in the complaint) that were having a materially negative impact on Salton’s business: (i) at the inception of the Class Period, the Company’s main revenue and growth driver, the Foreman grill, had saturated the market such that it was entirely foreseeable that sales had stalled and would continue to stall and/or could not be counted on for continued and sustainable revenues in the near term; (ii) without the Company’s illegal price support scheme, ended immediately prior to the Class Period by the aggressive efforts of many State Attorneys General, Salton could not maintain its market position or profit margin; and (iii) throughout much of the Class Period, Salton was either in violation of the Company’s debt agreements or was foreseeably going to be in breach of those agreements. On May 10, 2004, after the close of trading, defendants issued a release announcing that Salton was performing much worse than the Company had led investors to believe, that the Company was in violation of its senior secured revolving credit facility for the month ended March 27, 2004, and that defendants anticipated near-term non-compliance with certain financial covenants. In response to this announcement, the price of Salton common stock plummeted, from $6.69 per share on May 10, 2004, to $3.35 per share on May 11, 2004, a one day drop of 50% on unusually large trading volume.
If you bought the securities of Salton between November 11, 2002 and May 11, 2004 and sustained damages, you may, no later than July 23, 2004, 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: