RADNOR, Pa., Jan. 7 – LAWFUEL- The Law News Network — The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of Minnesota on behalf of all securities purchasers of Nash Finch Company (“Nash Finch” or the “Company”) (Nasdaq: NAFC – News), between February 24, 2005 and October 20, 2005, inclusive (the “Class Period”).
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at [email protected]
The complaint charges Nash Finch, Ron Marshall, and Le Anne M. Stewart with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the merger between Nash Finch and Roundy’s Distribution Center was plagued by integration problems; (2) that the Company’s net sales growth rate and earnings growth rate could not be sustained due to the integration issues with the Roundy’s Distribution Center; (3) that the Company’s core business was under-performing; (4) that the Company failed to maintain adequate internal controls; and (5) that as a result of the above, the defendants’ fiscal projections were lacking in any reasonable basis when made.
On October 20, 2005, the Company issued a press release announcing significantly lower fiscal 2005 earnings guidance of $3.00 to $3.25 per share, from its previous guidance of $3.70 and $3.89. The Company attributed the lowered guidance to “a decline in retail gross profit margins, primarily reflecting inadequate execution in pricing across the Company’s retail operations; depressed wholesale gross profit margins principally relating to manufacturer promotional spending; and higher than expected acquisition integration costs.” In reaction to this news, the price of Nash Finch stock fell $12.11 per share, or 28.6 percent, from its closing price of $42.34 on October 20, 2005, to close at $30.23 on October 21, 2005.
Additionally, the complaint alleges that defendants were motivated to engage in the fraudulent and wrongful conduct to sell more than $300 million in notes in a private placement and in order for Company insiders, including defendant Marshall, to sell more than $17 million of their privately held Nash Finch shares while in possession of material adverse non-public information about the Company.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com.
If you are a member of the class described above, you may, not later than February 17, 2006 move the Court to serve as lead plaintiff of the class, if you so choose. 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 Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin & Barroway, LLP
Darren J. Check, Esq.
Richard A. Maniskas, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll-free) or 1-610-667-7706
Or by e-mail at [email protected]