WASHINGTON- LAWFUEL – The Law News Network –March 7, 2006–The law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has filed a lawsuit on behalf of its client and on behalf of other similarly situated purchasers of the securities of The Mills Corporation (NYSE:MLS) (“Mills” or “the Company”) between February 17, 2004 and January 6, 2006 inclusive (the “Class Period”), in the United States District Court for the Eastern District of Virginia.
The complaint charges Mills and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Mills, a real estate investment trust (“REIT”), engages in the development, redevelopment, leasing, financing, management, and marketing of retail properties.
The complaint alleges that, during the Class Period, defendants issued numerous materially false and misleading statements (in press releases, on conference calls with investors and in filings with the Securities and Exchange Commission) which caused Mills’ securities to trade at artificially inflated prices. As alleged in the complaint, these statements were materially false and misleading because they misrepresented and failed to disclose the following adverse facts: (i) that the Company was materially overstating its financial results by improperly accounting for certain investments by its subsidiary, Mills Enterprises, Inc., among other things. Mills has now stated that it will be restating its financial statements for 2000 through 2004, and for the first three quarters of 2005, cut jobs and write off projects, which will result in approximately $77 million in charges for the fourth quarter; (ii) that the Company lacked adequate internal controls and was therefore unable to ascertain its true financial condition; and (iii) that, as a result of the foregoing, the values of the Company’s net income and funds from operations were materially overstated at all relevant times.
Beginning on October 31, 2005, the Company began to disclose the extent of its troubles. On that day, Mills announced that it would be rescheduling its conference call with investors because it needed extra time to evaluate its accounting for several items. On November 9, 2005, defendants disclosed additional problems with, among other things, weaknesses in the Company’s internal controls. Then, on January 6, 2006, the Company announced that it will be restating its financial results for 2000 through 2004 and for the first three quarters of 2005. It also stated that it would cut jobs and write off projects, which will result in approximately $77 million in charges for the fourth quarter of 2005. Following all of these disclosures, shares of Mills common stock declined.
If you purchased or acquired Mills securities during the Class Period, you may, no later than March 21, 2006, 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 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: