MILWAUKEE, April 16, 2003 (PRIMEZONE) -- The law firm of Ademi & O'Reilly, LLP announces that a class action lawsuit was filed on March 24, 2003, on behalf of purchasers of the securities of Collins & Aikman Corp. ("CKC" or the "Company") (NYSE:CKC) between August 7, 2001 and August 2, 2002, inclusive, (the "Class Period"), and who suffered damages thereby.
A copy of the complaint filed in this action is available from the Court, or can be viewed on our website at: http://www.ademilaw.com/cases/C&K.pdf
The action, numbered 03 CV 71173, is pending in the United States District Court for the Eastern District of Michigan, 231 W. Lafayette, Detroit, MI, against defendants CKC, Heartland Industrial Partners L.P. ("Heartland") and ten senior officers and/or directors of CKC The Honorable Gerald E. Rosen is the Judge presiding over the action.
The complaint charges 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 materially false and misleading statements to the market between August 7, 2001 and August 2, 2002. The complaint alleges that Heartland was at all relevant times a private equity firm that presented itself as being expert in leveraged buyouts of industrial manufacturers and that, in February 2001, Heartland acquired a controlling interest in CKC. CKC was at all relevant times a manufacturer of automotive interior components. The complaint further alleges that Heartland and CKC acquired Textron Automotive Company's TAC-Trim division and that, throughout the class period, Heartland and CKC repeatedly stated that the TAC-Trim acquisition would be accretive to earnings and that, in addition to doubling CKC's annual revenue, the TAC-Trim acquisition would increase operating income by reducing costs through synergies and economies of scale. The truth was revealed on August 5, 2002, when the Company reported a net loss of $20.3 million, or $0.29 per diluted share, compared with net income of $9.2 million, or $0.11 per diluted share a year earlier, and announced that it expected 2002 earnings to be $0.20 to $0.26 per share, well below the consensus estimate of $0.74 per share. On this news, the investing public dumped its CKC stock, pushing the price down 49% to close at $2.81 on relatively high trading volume.
If you bought the securities of CKC between August 7, 2001 and August 2, 2002, and sustained damages, you may, no later than May 23, 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 plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ademi & O'Reilly, LLP, or other counsel of your choice, to serve as your counsel in this action.
If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.ademilaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.