NEW YORK, Aug. 22, 2002 (PRIMEZONE) -- A class action Complaint has been filed in the United States District Court for the Northern District of Ohio, Eastern Division, on behalf of all persons or entities who purchased or otherwise acquired securities of Corrpro Companies Inc. ("Corrpro" or the "Company") (AMEX:CO) between April 1, 2000 through March 20, 2002, both dates inclusive (the "Class Period"). Corrpro Companies, Inc., Joseph W. Rog, Michael K. Baach, David H. Kroon, Neal R. Restivo, John L. Brack, Jr., Kurt R. Packer, and Marilyn Eisele are named as defendants in the complaint.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J. 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.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of false material misrepresentations about Corrpro's financial results when the Company inflated its revenues and disguised its losses to the market during the Class Period thereby artificially inflating the price of the stock.
Specifically, on March 20, 2002, the Company announced that it had discovered accounting irregularities causing the Company's consolidated operating income before taxes through December 31, 2001 to be inflated by between $4.5 and $5.3 million. In addition, as a result of the misrepresentations, the Company is expected to have to take a charge to pre-tax earnings in the Company's fiscal fourth quarter ending March 31, 2002 of between $5.3 and $6.7 million. As a result of these material misrepresentations, the Company's securities traded at artificially inflated prices on the New York Stock Exchange and the American Stock Exchange.
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 or otherwise acquired Corrpro securities during the Class Period described above, you may, no later than August 23, 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. Contact plaintiffs' counsel Eric J. Belfi or Sharon Lee of Rabin & Peckel LLP to further discuss this action, this announcement, or your rights or interests.
More information on this and other class action lawsuits can be found at http://www.primezone.com/ca