WASHINGTON, DC -09/08/2005 – LAWFUEL – The Law News Network – The law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has filed a lawsuit on behalf of its client and a proposed class of purchasers of the securities of Buca, Inc. (NASDAQ :BUCA) (“Buca” or the “Company”) between February 6, 2001 and March 11, 2005, inclusive (the “Class Period”) in the United States District Court for the District of Minnesota. The Company and three of its former top executives are named as Defendants.
Buca is a Minneapolis-based company that owns and operates over 100 restaurants around the country. The complaint alleges that the defendants issued false and misleading financial statements throughout the Class Period. During that time, according to the complaint, the Company materially overstated its income (or understated its losses), overstated its revenues, lacked adequate internal controls, and failed to follow generally accepted accounting practices. Beginning in February 2005, Buca issued a series of news releases and SEC filings that disclosed these facts to the investing public, triggering a decline in the Company’s stock price.
Among other facts, the complaint alleges that:
— On February, 11, 2005, the Company disclosed in an SEC filing that it
had “incorrectly applied the accounting rules with respect to certain
operating lease transactions,” and that, as a result, it planned to restate
previously filed financial statements.
— On March 16, 2005, Buca announced the dismissal of two top executives.
— On July 25, 2005, Buca filed suit against two former executives
alleging, among other things, that they had taken secret cash payments from
vendors and misappropriated Company assets by having the Company pay for
their personal travel and vacations.
— On July 25, 2005, the Company restated certain of its financial
results — reducing income by approximately $20 million over fiscal years
2000 through 2003 — and stated that it was taking “remedial measures” to
correct material weaknesses in its “system of internal control over
If you purchased or acquired Buca securities during the Class Period, you may, no later than October 11, 2005, move the court to be appointed as Lead Plaintiff. There are certain legal requirements to serve as Lead Plaintiff. Any member of the purported class may move the court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent class member. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as Lead Plaintiff. To be a member of the class, you need not take any action at this time.
Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Philadelphia and Chicago, and is active in major litigation pending in federal and state courts throughout the nation. You may visit the firm’s website at www.cmht.com.
The firm’s reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
1100 New York Avenue, N.W.
West Tower – Suite 500
Washington, D.C. 20005
Telephone: 888-240-0775 or 202-408-4600
E-mail: [email protected] or [email protected]