HARTFORD, Conn., Aug. 3 LAWFUEL – The Law News Network — The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action
status has been filed in the United States District Court for the Southern
District of New York on behalf of all persons who purchased the publicly
traded securities of Prestige Brand Holdings, Inc. (NYSE: PBH) (\”Prestige\”)
traceable to the Company\’s initial public offering on or about February 9,
2005 (the \”IPO\”) through July 28, 2005 inclusive, (the \”Class Period\”).
The Complaint alleges that Prestige, certain of its officers and directors
and other insiders, violated federal securities laws by issuing misleading
public statements. Specifically, the prospectus (the \”Prospectus\”) filed with
the SEC in connection with the IPO of Prestige common stock, was materially
false and misleading. The complaint alleges that the Prospectus failed to
disclose the following: (i) that demand for the Company\’s products was
declining and certain brands, including Compound W products were failing to
maintain their market position and/or initial product sales levels; (ii) that
Prestige was planning to withdrawal several products from the market,
including Comet-brand housecleaning products that had proved unsuccessful,
thus further eroding the Company\’s revenues and market share; and (iii) as a
result of the foregoing, Defendants\’ statements and opinions concerning the
Company\’s sales, earnings, profitability and future prospects were lacking in
reasonable basis.
On July 27, 2005, Prestige announced its financial results for the quarter
ended June 30, 2005. Prestige reported sales declines in each of its three
business segments. The Company also lowered its earning guidance for the
remainder of fiscal 2005. On this news, the price of Prestige stock fell to
close at $11.90 per share on July 28, 2005, a decline of over 40% from the
previous day\’s close.
If you are a member of the class, you may, no later than October 3, 2005,
request that the Court appoint you as lead plaintiff of the class. A lead
plaintiff is a class member that acts on behalf of other class members in
directing the litigation. Although your ability to share in any recovery is
not affected by the decision whether or not to seek appointment as a lead
plaintiff, lead plaintiffs make important decisions which could affect the
overall recovery for class members, including decisions concerning settlement.
The securities laws require the Court to consider the class member(s) with the
largest financial interest as presumptively the most adequate lead
plaintiff(s).
While Schatz & Nobel has not filed a complaint, to view a copy of the
Complaint initiating the class action or for more information about the case,
class action cases in general, and your rights, please contact Schatz & Nobel
toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our
website: http://www.snlaw.net.
CONTACT: Wayne T. Boulton or Nancy Kulesa
Tel.: (800) 797-5499
Website: http://www.snlaw.net
