CHICAGO, April 4, 2003 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that class action lawsuits are pending in the United States District Court for the Southern District of New York, and in other jurisdictions, on behalf of purchasers of the securities of Koninklijke Ahold N.V., a/k/a Royal Ahold, (NYSE:AHO) ("Ahold" or the "Company") between March 6, 2001 and February 24, 2003, inclusive ("Class Period").
It has been alleged that the Company violated the federal securities laws by issuing a series of materially false and misleading statements to the market, causing the market price of Ahold securities to be artificially inflated. According to reports, as a result of these misrepresentations, the Company's Chief Executive Officer, Chief Financial Officer and two other directors of the Company have resigned and certain executives in its U.S. Foodservice subsidiary have been suspended. It has also been reported that both the United States Attorney for the Southern District of New York and the Securities and Exchange Commission have initiated investigations of these allegations. Reports from the Netherlands indicate that the Dutch financial markets regulator, AFM, has begun an investigation of the Company, and Sobi, a corporate watchdog group, has lodged a case with the public prosecutor accusing former Ahold CEO, Cees van der Hoeven, with being an accomplice to embezzlement, or handling stolen property.
On February 24, 2002, Ahold shocked the market by issuing a press release announcing that Ahold's operating earnings for fiscal year 2001 and expected operating earnings for fiscal year 2002 had been overstated by an amount that the Company believes may exceed $500 million. This was due primarily to overstatements of income related to promotional allowance programs at U.S. Foodservice, which are still being investigated. These overstatements would require the restatement of Ahold's financial statements for fiscal year 2001 and the first three quarters of 2002. According to the Company, a complete investigation has been ordered by the Audit Committee of Ahold's Supervisory Board and is continuing by outside legal counsel and independent forensic accountants. Pending the conclusion of this investigation, certain senior executives of the U.S. Foodservice purchasing and marketing management team have been suspended. The Company also announced that it was investigating, through forensic accountants, the legality of certain transactions and the accounting treatment thereof at its Argentine Disco unit, and that the investigation had uncovered certain transactions that were "questionable." The Company has deferred the announcement of its full-year results scheduled for March 5. Ahold's auditors have also informed Ahold that they are suspending the fiscal year 2002 audit pending completion of these investigations. Following the announcement on Monday, February 24, 2003, the Company's ADR's plunged over 61% from their close the previous Friday, to close at $4.16 per share after trading as low as $3.60 per share during the day. Much Shelist is currently investigating these claims. If you wish to discuss your rights and interests, or if you have information relevant to the lawsuit, you may contact Carol V. Gilden or Michael E. Moskovitz at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to Ahold.
If you purchased Ahold securities during the Class Period, and if you meet certain other legal requirements, you may file a motion in the court where the lawsuits have been filed to serve as a lead plaintiff. You must file your motion no later than April 28, 2003.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca