NEW YORK, Jan. 23, 2003 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) announces that it has filed a class action lawsuit in the United States District Court for the Northern District of Illinois (Eastern Division) against Spiegel, Inc. ("Spiegel" or the "Company") (Other OTC:SPGLA) and four of the Company's senior officers on behalf of investors who purchased the common stock of Spiegel during the period between April 24, 2001 and April 19, 2002, inclusive (the "Class Period").
The lawsuit alleges that defendants issued and/or failed to correct financial statements and results of operations which were false and misleading and prepared in violation of Generally Accepted Accounting Principles ("GAAP"), due, among other things, to Spiegel's accounting of its credit card business which improperly inflated its income and earnings, failed to account for increasing charge-offs, and grossly inflated the value of its securitized receivables.
On April 19, 2002, Spiegel revealed to the market information concerning the deterioration of its credit card business and its impact on Spiegel's' overall business. In addition, the Company reported that it had not filed its Form 10-K for the 2001 fiscal year. In response to the news, Spiegel's Class A Non-Voting shares fell from a high of $3.15 on April 19, 2002 to a low of $1.01 on April 22, 2002 or a decline of more than 90% from the Class Period high of $10.71. One June 3, 2002, the NASD delisted the Company's Class A common stock on the Nasdaq National Market System effective June 2, 2002, "based on the Company's filing delinquencies and other public interest concerns."
If you purchased the common stock of Spiegel during the Class Period, you have until Friday February 14, 2003 to ask the Court to appoint you as lead plaintiff for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, or if you would like to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.