RADNOR, Pa., April 6 – LAWFUEL – The Law News Network — The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United
States District Court for the Eastern District of Michigan on behalf of all
securities purchasers of Collins & Aikman Corp. (NYSE: CKC) (“Collins &
Aikman” or the “Company”) between May 6, 2004 and March 17, 2005 inclusive
(the “Class Period”).
If you wish to discuss this action or have any questions concerning this
notice or your rights or interests with respect to these matters, please
contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Darren J. Check,
Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
info@sbclasslaw.com.
The complaint charges Collins & Aikman, David Stockman, J. Michael Stepp,
and Bryce Koth with violations of the Securities Exchange Act of 1934. More
specifically, the complaint alleges that the Company failed to disclose and
misrepresented the following material adverse facts which were known to
defendants or recklessly disregarded by them: (1) that the Company improperly
accounted for certain supplier rebates; (2) that the Company’s financial
statements required net adjustments of approximately $10 – $12 million; (3)
that the Company’s financial statements were not prepared in accordance with
Generally Accepted Accounting Principles (“GAAP”); (4) that the Company lacked
adequate internal controls and was therefore unable to ascertain the true
financial condition of the Company; and (5) that as a consequence of the
foregoing, the Company’s net income and financial results were materially
overstated at all relevant times.
On March 17, 2005, Collins & Aikman announced that after the review of
vendor rebates covered an aggregate of approximately $88 million of vendor
transactions in fiscal years 2002 through 2004, the company’s management
believes that net adjustments of approximately $10 – $12 million are required
primarily occurring during fiscal 2004. News of this shocked the market.
Shares of Collins & Aikman fell $0.39 per share or 23.93 percent, on March 17,
2005, to close at $1.24 per share.
Plaintiff seeks to recover damages on behalf of class members and is
represented by the law firm of Schiffrin & Barroway, which prosecutes class
actions in both state and federal courts throughout the country. Schiffrin &
Barroway is a driving force behind corporate governance reform, and has
recovered in excess of a billion dollars on behalf of institutional and high
net worth individual investors. For more information about Schiffrin &
Barroway, or to sign up to participate in this action online, please visit
http://www.sbclasslaw.com.
If you are a member of the class described above, you may, not later than
June 6, 2005 move the Court to serve as lead plaintiff of the class, if you so
choose. A lead plaintiff is a representative party that acts on behalf of
other class members in directing the litigation. In order to be appointed
lead plaintiff, the Court must determine that the class member’s claim is
typical of the claims of other class members, and that the class member will
adequately represent the class. Under certain circumstances, one or more
class members may together serve as “lead plaintiff.” Your ability to share
in any recovery is not, however, affected by the decision whether or not to
serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other
counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin & Barroway, LLP
Marc A. Topaz, Esq.
Darren J. Check, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll-free) or 1-610-667-7706
Or by e-mail at info@sbclasslaw.com
