NEW YORK, June 13, 2003 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Eastern District of Texas, case number 203-CV-222, on behalf of all persons or entities who purchased or otherwise acquired Daisytek International Corp. ("Daisytek" or the "Company") securities (Nasdaq:DZTK) during the period from November 9, 2001 to April 28, 2003, both dates inclusive (the "Class Period"). The Complaint names James R. Powell, Ralph Mitchell, and Peter Wharf as defendants.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J. Belfi or Sharon Lee at Rabin, Murray & Frank LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
The Complaint alleges that defendants violated the Securities Exchange Act of 1934 by making a series of materially false and misleading statements concerning Daisytek's financial results during the Class Period which artificially inflated the price of Daisytek securities. In particular, the Complaint alleges that Defendants improperly accounted for uncollectible accounts receivables and vendor rebates receivables in order to inflate the Company's financial results. As a result of their misconduct, the Individual Defendants were able to sell their personal holdings in the Company's stock for over a million dollars in proceeds. Additionally, the Complaint alleges that during the Class Period, the Individual Defendants permitted the Company to enter into a $200 million credit facility, raise additional capital, and caused Daisytek to benefit economically from their wrongful course of conduct.
On April 28, 2003, Daisytek announced that it expected significant losses as a result of a write-down of customer and vendor receivables on inventory and large restructuring charges. Subsequently, Daisytek announced the resignation of both its Chief Executive Officer and Chief Financial Officer.
Plaintiff is represented by the law firm of Rabin, Murray & Frank LLP. Rabin, Murray & Frank LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Daisytek securities during the Class Period described above, you may, no later than July 29, 2003, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. Contact plaintiff's counsel Eric J. Belfi or Sharon Lee of Rabin, Murray & Frank LLP to further discuss this action, this announcement, or your rights or interests.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca