SAN DIEGO–LAWFUEL – Class Actions News – Sept. 11, 2006–Lerach Coughlin Stoia Geller Rudman & Robbins LLP (“Lerach Coughlin”) (http://www.lerachlaw.com/cases/advo/) today announced that a class action has been commenced in the United States District Court for the District of Connecticut on behalf of purchasers of ADVO, Inc. (“ADVO”) (NYSE:AD) common stock during the period between July 6, 2006 and August 30, 2006 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, William Lerach or Darren Robbins of Lerach Coughlin at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.lerachlaw.com/cases/advo/. 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 charges ADVO and certain of its officers and directors with violations of the Securities Exchange Act of 1934. ADVO is a direct mail media company that engages in soliciting and processing printed advertising from retailers, manufacturers, and service companies in the United States and Canada.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results, concealing material adverse problems in ADVO’s long-term financial health and intrinsic value. Defendants concealed this information in order to accomplish a merger which the Company had entered into with Valassis Communications, Inc. (“Valassis”), a leading company in marketing services, to create the largest integrated media services provider in the nation. Valassis was acquiring all of ADVO’s outstanding common stock in an all cash transaction. As a result of defendants’ false statements, investors believed the acquisition would occur, causing ADVO’s stock to trade at artificially inflated prices during the Class Period, reaching a high of $36.80 per share in August 2006. Then, on August 30, 2006, Valassis announced that it had filed an action to rescind its merger agreement with ADVO. On this news, the Company’s shares fell to $28.59 per share.
According to the complaint, to accomplish the merger, ADVO officers and employees concealed material information, including that: (a) its business had deteriorated so badly that it would never be replaced; (b) its financial internal controls were woefully inadequate; and (c) its business was not as nearly successful as the market and Valassis had been led to believe.
Plaintiff seeks to recover damages on behalf of all purchasers of ADVO common stock during the Class Period (the “Class”). The plaintiff is represented by Lerach Coughlin, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Lerach Coughlin, a 180-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston, Philadelphia and Seattle, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Lerach Coughlin lawyers have been responsible for more than $20 billion in aggregate recoveries. The Lerach Coughlin Web site (http://www.lerachlaw.com) has more information about the firm.