BALA CYNWYD, Pa., June 3, 2002 (PRIMEZONE) -- A shareholder sued Concord Camera Corp. (Nasdaq:LENS) ("Concord" or the "Company") claiming that the company misled investors about its business and financial condition, as alleged in a complaint filed by the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the Southern District of Florida (02-21376) and seeks damages for violations of federal securities laws on behalf of all investors who bought Concord Camera Corp. securities between January 18, 2001 through June 22, 2001 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Concord Camera Corp. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that Concord Camera Corp., Harlan Press and Ira B. Lampert issued a series of materially false and misleading statements which failed to disclose that (i) no less than $15,777,000, more than 45% of the Company's receivables, represented an unsecured and delinquent balance due from one single customer -- KB Gear; (ii) this delinquent $15,777,000 receivable balance was uncollectible; and (iii) due to KB Gear's inability to pay for merchandise, the Company was stuck with a large quantity of customized higher-cost specialty components which had no alternative use and were non-salable.
On June 22, 2001, the last day of the Class Period, the Company issued a press release revising its fourth quarter guidance and disclosing for the first time that: (i) excess inventory positions at many of the Company's customers and the resulting changes in their purchasing patterns have adversely affected inventory sales; (ii) the Company will record the following one-time charges against income in the quarter: $15.8 million accounts receivable provision, $4.3 million inventory provision, $1.4 million restructuring charge; and (iii) the accounts receivable provision and $2.0 million of the inventory provision relate to a financially troubled former customer of the Company with respect to which management has concluded that workout efforts are not likely to be successful. In response to these disclosures, the price of Concord stock plummeted over 20% to close at $6.02.
If you purchased Concord Camera Corp. securities between January 18, 2001 through June 22, 2001, you may be a member of the class and have until June 24, 2002to move the court to become a lead plaintiff. To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca