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 December 10, 2001, on behalf of purchasers of the securities of APW, Ltd. ("APW" or the "Company") (NYSE:APW) between September 26, 2000 and March 20, 2001, inclusive. 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/apw/
The action, numbered 01-C-1232, is pending in the United States District Court, Eastern District of Wisconsin, located at 362 U.S. Courthouse, 517 East Wisconsin Avenue, Milwaukee, Wisconsin 53202, against defendants APW, Richard G. Sim and William P. Albrecht ("Albrecht"). The Honorable Magistrate Judge Patricia J. Gorence is presiding over the case.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, by issuing materially false and misleading statements to the market. Specifically, throughout the Class Period, defendants repeatedly issued statements indicating that, among other things, the Company was growing at a rapid pace, due, in significant part, to strong demand for its product offerings by its customers. The complaint alleges that these statements were materially false and misleading because, among other things, they failed to disclose or misrepresented that (a) in fact, the Company was experiencing decreased demand for its products as its primary customers were substantially decreasing their orders; (b) due to the declining demand, APW's customers were overstocked with APW products and, accordingly, would be decreasing their orders in the future while they worked down their bloated inventories; and (c) in response to these negative factors, APW was attempting to slash costs and, in this regard, had started to reduce its workforce. On March 20, 2001, defendants finally disclosed this information and reported that the Company's sales growth had slowed dramatically and reported a loss of $0.15 per share, compared to analysts' expectations of a $0.27 per share profit. Defendants also disclosed that the Company's reduced performance, combined with other factors, caused the Company to be in breach of certain covenants in its credit agreement. In response to this announcement, the price of APW common stock dropped from $20.65 per share on March 20, 2001, to close at $7.39 per share on March 21, 2001. Prior to this disclosure, defendant Albrecht was able to sell shares of his personally-held stock for gross proceeds of more than $1.7 million and the Company was able to complete its acquisition of Mayville Metal Products, which was partially paid for using the Company's stock as currency.
If you bought the securities of APW between September 26, 2000 and March 20, 2001, you may, no later than February 8, 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, a 170-lawyer firm with offices in New York City, San Diego, San Francisco, Los Angeles, Boca Raton, Seattle and Philadelphia, 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 companies, as well as victims of World War II and other human rights violations, and has been responsible for more than $30 billion in aggregate recoveries. The Milberg Weiss Web site (http://www.milberg.com) has 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: APWcase@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