NEW YORK, Feb. 28, 2003 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Southern District of New York on behalf of all purchasers of Koninklijke (translated as "Royal") Ahold, N.V. ("Ahold" or the "Company") (NYSE:AHO) securities between March 6, 2001 through February 21, 2003, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's website at www.faruqilaw.com.
The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning Ahold's financial results and business prospects. Specifically, the complaint alleges that Ahold failed to disclose that the Company had materially overstated its income by improperly including far higher promotional allowances-provided by suppliers to promote their products-than the Company had actually received in payment. Moreover, the Company engaged in certain transactions which were possibly illegal and were improperly accounted for. As a result, the price of the Company's securities were artificially inflated throughout the Class Period. On February 24, 2003, however, Ahold shocked the market by announcing that it would restate its financial results for its fiscal year, 2001 and for the first three quarters of fiscal year 2002. Defendant revealed, among other things, that due to overstatements of income related to promotional programs, earnings have been overstated by at least $500 million. Following the release of this news, Ahold's stock price declined in excess of 60% to close at $4.16 per share, significantly below the class period high of $32.65.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Ahold securities between March 6, 2001 and February 21, 2003, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website at www.faruqilaw.com
If you purchased Ahold securities during the Class Period, you may, not later than April 28, 2003, 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 your rights or interests, please contact:
ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail: Avozzolo@faruqilaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.