PHILADELPHIA, Oct. 21, 2002 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was filed on October 18, 2002, in the United States District Court for the Northern District of Illinois, on behalf of all persons and entities who purchased or otherwise acquired the common stock of Sears, Roebuck & Co. (NYSE:S)( "Sears" or the "Company"), between January 17, 2002 and October 17, 2002, inclusive (the "Class Period").
The action, numbered 02-CV-7527 , is pending in the United States District Court, Northern District of Illinois, located at United States Courthouse, 219 S. Dearborn St., Chicago, IL 60604, against defendants Sears, Roebuck & Co., Alan Lacy, Paul J. Liska, Glenn Richter, and Thomas E. Bergmann. The Honorable Elaine E. Bucklo is presiding over the case. A copy of the Complaint is available from the Court or the Law Offices Bernard M. Gross, P.C. Please visit our website at http://www.bernardmgross.com or contact us by phone at 866-561-3600 (toll free) or by E-mail at susang@bernardmgross.com.
The complaint charges Sears, Roebuck & Co., Alan Lacy, Chief Executive Officer and President, Paul J. Liska, Chief Financial Officer, Glenn Richter, Chief Financial Officer since October 4, 2002 and Thomas E. Bergmann, Chief Accounting Officer and Controller with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5, by issuing a series of materially false and misleading statements to the market during the Class Period. As alleged in the Complaint, Sears issued numerous statements regarding its performance during the Class Period which represented that the Company was successfully growing its revenues and earnings. Additionally, in each of its releases and financial reports, Sears reported its provisions for uncollectible accounts and in, its 2001 annual report represented that its reserves were "adequate". The Complaint alleges that these statements were materially false and misleading when made because they failed to disclose that the risk of customer defaults on Sears credit card bills had risen dramatically throughout the Class Period and that the Company had under-reserved for this risk by hundreds of millions of dollars, thereby inflating its assets (by increasing accounts receivable) and earnings (by under reporting its expenses).
On October 17, 2002, Sears surprised the market by issuing a press release stating that Sears would grow its 2002 earnings by 15%, rather than 22%, because of a "$222 million increase in the domestic provision for uncollectible accounts". In reaction to the announcement, the price of Sears common stock plunged 32%, falling from a $33.95 per share close on October 16 to a close of $23.15 per share on October 17, on trading of over 36 million shares.
Law Offices Bernard M. Gross, P.C. has significant experience and expertise in prosecuting class actions. Law Offices Bernard M. Gross P.C. has recently filed the following cases:
Company Purchased During Lead Plaintiff Symbol Class Period Filing Deadline Cutter & Buck, Inc. 6/23/00 - 8/12/02 11/12/02 Nasdaq:CBUKE Electronic Data 9/7/99 - 9/24/02 11/25/02 Systems Corp. Nasdaq: EDS
Plaintiff seeks to recover damages on behalf of Class members and is represented by the law firm of Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions.
If you bought the common stock of Sears between January 12, 2002 and October 17, 2002, you may, no later than December 17, 2002, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or rights or interests with respect to these matters,
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca