NEW YORK, June 6, 2002 (PRIMEZONE) -- Rabin & Peckel LLP announced class action complaint has been filed in the United States District Court for the Southern District of Florida, civil action number 02 cv 60777, on behalf of all persons or entities who purchased Concord Camera Corporation ("Concord" or the "Company") common stock (Nasdaq:LENS) between January 18, 2001 and June 22, 2001, both dates inclusive (the "Class Period"). Concord, Harlan Press and Ira B. Lampert are named as defendants in the action.
The Complaint alleges that defendants violated section 10(b) of the Securities and Exchange Act of 1934, and SEC Rule 10b-5 by issuing a series of materially false and misleading statements concerning its business and financial condition. The complaint alleges that, throughout the Class Period, defendants 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.
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 LLP at www.rabinlaw.com.
If you purchased Concord common stock between January 18, 2001 and June 22, 2001, you may, no later than June 24, 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 Sharon Lee, 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.