NEW YORK, Jan. 31, 2002 (PRIMEZONE) -- The law firm of Milberg Weiss Bershad Hynes & Lerach LLP announces that a class action lawsuit was filed on January 11, 2002, on behalf of purchasers of the securities of HA-LO Industries Inc., ("HALO" or the "Company") (NYSE:HMK) between February 18, 1999 and November 23, 2001 inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss' website at: http://www.milberg.com/halo/
The action, numbered 02-C-270, is pending in the United States District Court for the Northern District of Illinois, Eastern Division, located at 219 S. Dearborn Street, Illinois, against defendants Lou Weisbach (President and CEO until November 1999, Chairman of the Board), John R. Kelley Jr. (President and CEO from November 1999 until February 15, 2001), Marc S. Simon (CEO since February 15, 2001), and Gregory J. Kilrea (CFO). HALO has filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code and is not a defendant in this lawsuit. The Honorable James H. Holderman is the Judge presiding over this action.
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between February 18, 1999 and November 23, 2001, concerning its financial performance for the Company's fiscal year 1998, 1999 and 2000 and the first quarter of 2001. Throughout the Class Period, defendants issued press releases reporting HALO's quarterly and year-end financial performance, and filed reports confirming such performance with the United States Securities and Exchange Commission. These reports positively portrayed HALO's performance during the Class Period. These statements, as alleged in the complaint, were materially false and misleading because the Company had, throughout the Class Period, improperly recognized revenues, thereby inflating its reported sales and earnings. On November 23, 2001, HALO issued a press release announcing the restatement of its previously filed financial statements for the period 1998 to 2000, and that the Company "may also restate its first quarter 2001 Form 10-Q." According to the press release, the restatement will have the effect of decreasing the Company's reported Class Period pretax income by a total of $15 million, including $1.2 million if the restatement includes the first quarter of 2001.
If you bought the securities of HALO between February 18, 1999 and November 23, 2001 you may, no later than March 12, 2002, request that the Court appoint you as lead plaintiff. 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 Milberg Weiss Bershad Hynes & Lerach LLP, or other counsel of your choice, to serve as your counsel in this action.
Milberg Weiss Bershad Hynes & Lerach LLP (http://www.milberg.com) is a 190-lawyer firm with offices in New York City, San Diego, San Francisco, Los Angeles, Boca Raton, Philadelphia and Seattle, and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others, and has been responsible for more than $20 billion in aggregate recoveries. Please contact the Milberg Weiss website for more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys:
Steven G. Schulman or Samuel H. Rudman One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 Phone number: (800) 320-5081 Email: halocase@milbergNY.com Website: http://www.milberg.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca