NEW YORK, Feb. 27, 2003 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) has filed a class action in the United States District Court for the District of Maryland, case number 03-CV-530, against Royal Ahold NV ("Royal Ahold" or the "Company") (NYSE:AHO), two of the Company's top officers/directors, and the Company's independent auditor, Deloitte & Touche Registered Accountants, on behalf of investors who purchased the American Depository Receipts ("ADRs") of Ahold during the period between May 15, 2001 and February 21, 2003, inclusive (the "Class Period").
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing false and misleading statements concerning the Company's publicly reported earnings. In particular, defendants overstated operating earnings by $500 million in fiscal years 2001 and 2002 by recognizing more money in promotional allowances provided by suppliers to promote their goods than that Company actually received.
Before the market opened on February 24, 2003, Ahold announced that it will restate its financial statements for fiscal year 2001 and the first three quarters of fiscal year 2002 to correct the inappropriate accounting for discounts from suppliers at its U.S. Foodservice division, which is headquartered in Columbia, Maryland. The Company also announced that its Chief Executive and Chief Financial Officers, defendants Cees van der Hoeven and Michael Meurs, respectively, had been fired and that several U.S. executives had been suspended. In addition, the Company announced that it has uncovered "questionable" transactions in its investigation of certain transactions and the accounting treatment thereof at its Argentine subsidiary, Disco. In response to the Company's announcement, Ahold's ADRs fell $6.52, or 61%, to $4.16 on volume of 16,197,900 units traded. The Securities & Exchange Commission ("SEC") has launched an investigation of the Company's accounting practices.
If you purchased the ADRs of Royal Ahold during the Class Period, you have until April 28, 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.
The Pomerantz firm, which has offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. Local Counsel is Beins, Goldberg & Gleiberman of Washington, D.C.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca