NEW YORK, March 14, 2003 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Northern District of Texas on behalf of purchasers of Michaels Stories, Inc. ("Michaels Stores" or the "Company") (NYSE:MIK) securities between August 8, 2002 and November 7, 2002, 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 Michaels Stores' financial results and business prospects. Specifically, the complaint alleges that Michaels Stores consistently represented that its financial condition was strong and that the Company was increasing market share and would continue to do so in the foreseeable future, despite a known downturn in the consumer goods market. As a result, the price of the Company's securities were artificially inflated throughout the Class Period, allowing certain defendants to sell over $15.3 million worth of their personally held Michaels Stores common stock. On November 7, 2002, however, Michaels Stores stunned the market when it announced that October same store sales only increased 2% for the quarter. Contrary to prior representations, the Company was not "in great shape", it did not have "considerable momentum" and was not proceeding according to guidance sponsored or provided by defendants because the Company was already suffering from the same adverse market conditions competitors and other retailers were experiencing.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Michaels Stores securities between August 8, 2002 and November 7, 2002, 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 Michaels Stores securities during the Class Period, you may, not later than April 7, 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.