PHILADELPHIA– LAWFUEL – Litigation Newswire –The law firm of Spector, Roseman & Kodroff, P.C. announces that a securities class action lawsuit was commenced in the United States District Court for the Southern District of New York, on behalf of purchasers of the securities of SunOpta Inc. (“SunOpta” or the “Company”) (NasdaqGS:STKL) (Toronto:SOY.TO) between May 8, 2007 through January 25, 2008, inclusive (the “Class Period”).
The Complaint alleges that throughout the Class Period, defendants failed to disclose material adverse facts about the Company’s financial condition, its business relationships, and prospects. Specifically, it is alleged that defendants failed to disclose the following material: (1) that defendants inflated the Company’s financial results, which resulted in an overstatement of the Company’s profitability; (2) that the Company’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”); (3) that the Company lacked adequate internal and financial controls; and (4) as a result of the foregoing, the Company’s financial statements were materially false and misleading at all relevant times.
On January 24, 2008, after the market closed, the Company shocked investors when it reported its anticipated financial results for fiscal year 2007, disclosing for the first time that it expected to incur material write-downs and provisions in the range of $12 million to $14 million, which the Company attributed to write-downs of inventory within the SunOpta Fruit Group’s berry operations, as well as difficulties in collecting for services and equipment provided to a customer of the SunOpta BioProcess Group. The Company disclosed that it would likely restate financial results from previous quarters in 2007.
On January 25, 2008, the Company’s shares declined $3.51 per share, or approximately 37%, on heavier than usual trading volume, to close at $6.05 per share in response to the January 25, 2008 announcements.
If you purchased SunOpta securities during the Class Period, you may, no later than March 28, 2008, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the “largest financial interest” in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the “largest financial interest,” and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in SunOpta securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at [email protected] for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel Robert M. Roseman toll-free at 888-844-5862 or e-mail at [email protected] For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm’s reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered through judgments and settlements on behalf of thousands of defrauded shareholders and companies.