Collins & Aikman (NYSE:CKC)
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Investor Sues Collins & Aikman Corporation for Stock Fraud,
Berman DeValerio Pease Tabacco Burt & Pucillo Announces
BOSTON, April 8 /PRNewswire/ -- An investor sued Collins & Aikman Corporation
("C&A" or the "Company") (NYSE:CKC) today, claiming that the auto parts maker
misled investors about its finances.
Berman DeValerio Pease Tabacco Burt & Pucillo (http://www.bermanesq.com/) filed
the class action in the U.S. District Court for the Eastern District of
Michigan. The lawsuit seeks damages for violations of federal securities laws
on behalf of all investors who purchased C&A common stock from May 15, 2003
through and including March 17, 2005 (the "Class Period").
To receive a copy of the complaint, you may contact the court, call the firm at
(800) 516-9926 or go to http://www.bermanesq.com/pdf/CollinsAikman_Cplt.pdf.
The lawsuit claims that the defendants violated Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and the rules and regulations promulgated
thereunder, including U.S. Securities and Exchange Commission ("SEC") Rule
10b-5.
Although C&A reported steady revenues throughout the Class Period, the
Company's seemingly optimistic financial prospects were the direct result of
artificially inflated revenues caused by improper accounting for supplier
credits and rebates, the complaint alleges.
On March 17, 2005, C&A shocked the investing public by announcing a delay in
its 2004 earnings report for a second time due to improper accounting practices
related to supplier rebates, which would likely result in a restatement for
Fiscal Year 2004. The Company further announced that its internal investigation
was ongoing and that the accounting improprieties may result in the Company
restating its financial results for Fiscal Year 2003. In particular, C&A
reviewed its accounting practices dating back to 2002 and discovered that it
had overstated revenues by approximately $12 million.
On the heels of those revelations, C&A's common stock fell nearly 24% from a
closing price of $1.63 on March 16, 2005 to close at $1.24 on March 17, 2005.
If you purchased C&A common stock from May 15, 2003 through and including March
17, 2005 you may wish to contact the following attorneys at Berman DeValerio
Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Leslie R. Stern, Esq.
Bryan A. Wood, Esq.
One Liberty Square
Boston, MA 02109
(800) 516-9926
If you wish to apply to be lead plaintiff in this action, a motion on your
behalf must be filed with the court no later than June 6, 2005. You may contact
the attorneys at Berman DeValerio to discuss your rights regarding the
appointment of lead plaintiff and your interest in the class action, or you may
submit information online at
http://www.bermanesq.com/Securities/Signup1.asp?caseid=539. Please note, you
may also retain counsel of your choice and need not take any action at this
time to be a class member.
Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions
nationwide on behalf of institutions and individuals, chiefly victims of
securities fraud, antitrust law violations, and consumer fraud.
DATASOURCE: Berman DeValerio Pease Tabacco Burt & Pucillo
CONTACT: Bryan A. Wood, Esq., of Berman DeValerio Pease Tabacco Burt &
Pucillo, +1-800-516-9926
Web site: http://www.bermanesq.com/