NEW YORK, Feb. 21, 2002 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the District of New Jersey, civil action on behalf of all persons or entities who purchased Suprema Specialties, Inc. ("Suprema" or the "Company") common stock (Nasdaq:CHEZ) between August 8, 2001 and December 21, 2001, both dates inclusive (the "Class Period").
The complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b(5) promulgated thereunder by the Securities and Exchange Commission ("SEC"). Plaintiff alleges that during the Class Period, defendants issued a series of material misrepresentations to the market in press releases and SEC filings thereby artificially inflating the price of Suprema securities. Specifically, the complaint charges that defendants issued quarterly and annual press releases and filed reports with the SEC favorably portraying the Company's business and financial condition. The complaint charges that the representations were materially false and misleading because the Company was using suspect accounting practices in reporting its financial performance, which distorted its reported financial statements.
In November 2001, Suprema commenced a secondary offering of common stock pursuant to a registration statement filed with the SEC containing allegedly misleading financial information. In the secondary offering, the Company and certain shareholders including, defendants, Cocchiola and Venechanos, sold a total of 4,050,000 shares at a price of $12.75 per share. Subsequently, on December 21, 2001, Suprema issued a press release announcing that it is conducting an internal investigation into the Company's previously filed financial statements and that defendant Venechanos has resigned from his position as Chief Financial Officer. Immediately after this announcement, the Nasdaq Stock Exchange halted trading in Suprema stock pending its receipt of additional information. Suprema common stock has not resumed trading.
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin & Peckel at www.rabinlaw.com.
If you purchased Suprema common stock during the Class Period described above, you may, no later than March 18, 2002, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. If you wish to discuss this action further or have any questions concerning this announcement, or your rights or interests, please contact plaintiff's counsel, Eric Belfi or Maurice Pesso, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca