BALA CYNWYD, Pa., July 10, 2002 (PRIMEZONE) -- A shareholder sued Rayovac Corporation ("Rayovac" or the "Company") (NYSE:ROV) 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 Western District of Wisconsin (02-C-0325) and seeks damages for violations of federal securities laws on behalf of all investors who bought Rayovac Corporation securities between April 26, 2001 and September 19, 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 Rayovac Corporation 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 the Wisconsin-based Rayovac Corporation's statements failed to disclose and/or misrepresented the following adverse facts, among others: (a) that the Company was experiencing declining demand for its products and in order to stimulate demand and create the impression that the Company was performing according to analyst expectations, Rayovac was extending generous credit terms to customers in order to induce them to purchase additional products, thereby pulling sales in from the future. As a result, Rayovac created the appearance of earnings growth, when defendants knew, or recklessly disregarded that future sales would be negatively impacted by the aforementioned practices; (b) that the Company's expansion in Latin America was the result of aggressive sales practices whereby the Company extended generous payment terms and induced customers to take additional unneeded inventory; and (c) based on the foregoing, defendants lacked a reasonable basis for their statements that the Company would grow by 8-9% in the third and fourth quarter of 2001.
If you purchased Rayovac Corporation securities between April 26, 2001 and September 19, 2001, you may be a member of the class and have until July 30, 2002 to 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