NEW YORK, April 4, 2003 (PRIMEZONE) -- Abbey Gardy, LLP commenced a Class Action lawsuit in the United States District Court for the Northern District of Georgia on behalf of a class (the "Class") of all persons or entities who purchased securities of AFC Enterprises, Inc. ("AFC" or the "Company") (Nasdaq:AFCE) between March 2, 2001 and March 24, 2003, inclusive (the "Class Period").
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period, thereby artificially inflating the price of AFC securities. The Complaint names as defendants AFC, Frank J. Belati (CEO) and Gerald J. Wilkins (CFO).
On March 24, 2003, after the market closed, AFC shocked the market by announcing that it would be restating its financial statements for fiscal year 2001 and the first three quarters of 2002. In response to this negative announcement the price of AFC common stock dropped by over 20% on extremely heavy trading volume.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired AFC securities during the Class Period. If you purchased or otherwise acquired AFC securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased AFC securities during the Class Period, you may, no later than May 27, 2003 request that the Court appoint you as lead plaintiff.
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 plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Nancy Kaboolian, Esq. of Abbey Gardy, LLP. at (800) 889-3701 or (212) 889-3700 email Nkaboolian@abbeygardy.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca