NEW YORK, Oct. 24, 2002 (PRIMEZONE) -- The law firm of Wechsler Harwood LLP ("Wechsler Harwood") announces that a class action lawsuit was filed on October 24, 2002, on behalf of purchasers of the securities of Sears, Roebuck & Co. ("Sears" or the "Company") (NYSE:S) between January 17, 2002 to October 17, 2002, inclusive, (the "Class Period.") A copy of the complaint filed in this action is available from the Court, or can be viewed on Wechsler Harwood Website at: http://www.whesq.com.
This action is against defendants Sears, Alan Lacy (CEO, President and Chairman), Glenn Richter (CFO from October 4, 2002, Senior V.P., Finance since inception of Class Period), Paul J. Liska (CFO until October 4, 2002) and Thomas E. Bergmann (Chief Accounting Officer). The Honorable Elaine E. Bucklo is the Judge presiding over the action.
The complaint charges 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 materially false and misleading statements to the market between January 17, 2002 to October 17, 2002. According to the complaint, defendants, throughout the Class Period, represented that Sears was growing its earnings strongly, driven by its Credit and Financial Products segment and that it would achieve earnings growth of 22% in 2002 over 2001. In addition, in each of its press releases and SEC reports filed during the Class Period, Sears reported its provisions for uncollectible accounts and in, its 2001 annual report represented that such reserves were "adequate."
These, and other statements detailed in the complaint, were allegedly false and misleading because, according to the complaint, they did not disclose that the Company's risk for uncollectible accounts had increased materially throughout the Class Period and, in addition, that Sears was under-reserving for its uncollectible accounts which inflated its earnings and balance sheet. On October 17, 2002, Sears reported in a press release that it will grow its 2002 earnings by 15%, rather than the 22% it reaffirmed as recently as ten days previously, because of a "$222 million increase in the domestic provision for uncollectible accounts." In addition, according to the press release, earnings for the third quarter were 26% less than the previous year. In reaction to the press release, the price of Sears common stock plummeted, falling 32%, from an October 16 close of $33.95 per share to close at $23.15 per share on October 17, on extremely heavy trading volume.
If you bought the securities of Sears between January 17, 2002 to October 17, 2002, you may, no later than December 17, 2002, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood LLP, or other counsel of your choice, to serve as your counsel in this action.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 David Leifer, Wechsler Harwood Shareholder Relations Department: dleifer@whesq.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca