ATLANTA, Feb. 15, 2002 (PRIMEZONE) -- Holzer & Holzer announced today that a class action lawsuit was filed on February 14, 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 is available from the Court or by contacting Holzer & Holzer (toll-free) at (888) 508-6832 or by sending an e-mail to michaelfisteljr@msn.com.
The action, numbered 02-C-1089, is pending in the United States District Court for the Northern District of Illinois, Eastern Division, against defendants Lou Weisbach, John R. Kelley Jr., Marc S. Simon and Gregory J. Kilrea. HALO has filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code and is not a defendant in this lawsuit.
The Complaint alleges that defendants violated the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false statements to the market between February 18, 1999 and November 23, 2001, concerning its financial performance for the Company's fiscal years 1998, 1999 and 2000 and the first quarter of 2001. Throughout the Class Period, as alleged in the Complaint, defendants issued press releases positively portraying HALO's quarterly and year-end financial performance, and filed reports confirming such performance with the United States Securities and Exchange Commission. The Complaint further alleges that these statements 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, the Complaint alleges, 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 purchased securities in HALO during the Class Period set forth above, you may, no later than March 12, 2002, move the Court to serve as a lead plaintiff in the action. In order to serve as a lead plaintiff, however, you must meet certain legal requirements. If you have any questions about your rights with respect to this lawsuit, you may contact Holzer & Holzer, Michael I. Fistel, Jr., Esq. (toll-free) at (888) 508-6832, or inquire via e-mail to michaelfisteljr@msn.com.
Holzer & Holzer has substantial experience representing investors in securities fraud class action lawsuits such as this. Holzer & Holzer is located in Atlanta, GA, but represents investors in securities class action lawsuits throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call the Firm.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca