NEW YORK, March 31, 2003 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Northern District of Georgia on behalf of all purchasers of AFC Enterprises, Inc. ("AFC" or the "Company") (Nasdaq:AFCE) securities between March 2, 2001 and March 24, 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 AFC's financial results and business prospects. Specifically, the complaint alleges that AFC failed to disclose that the Company inflated its operating results by utilizing improper accounting methods when accounting for, amongst other things, the Company's assets, advertising revenue, inventory, rent and expenses throughout the Class Period. As a result, the price of the Company's securities were artificially inflated during the Class Period, allowing certain AFC insiders to sell over 537,000 shares of personally held AFC stock. On March 24, 2003, however, the Company shocked the market when it announced it would be restating its financial statements for fiscal year 2001 and the first three quarters of 2002. Upon this revelation, AFC's common stock fell in excess of 20% in a single day on extremely heavy trading volume.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired AFC securities between March 2, 2001 and March 24, 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 AFC securities during the Class Period, you may, not later than May 27, 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