PHILADELPHIA, June 18, 2003 (PRIMEZONE) -- The law firm of Spector, Roseman & Kodroff, P.C. announces that it filed a securities class action lawsuit in the United States District Court for the Northern District of California, on behalf of purchasers of the common stock of CornerStone Propane Partners, L.P. ("CornerStone" or the "Company") (Pink Sheets:CNPP) between November 2,1999 through February 11, 2003, inclusive (the "Class Period").
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 material misrepresentations to the market during the Class Period, thereby artificially inflating the price of CornerStone securities. It is specifically alleged that throughout the Class Period the Company failed to disclose: (i) that Cornerstone had been systematically concealing that it was overpaying for acquisitions made as early as 1997 by improperly misallocating portions of the purchase price of physical assets which should have been allocated to goodwill; (ii) that it was materially overstating its earnings before interest, taxes, depreciation and amortization, its net income and its earnings per unit; and (iii) that CornerStone lacked adequate internal controls and was therefore unable to ascertain or report the true financial condition of the Partnership.
Finally, on February 11, 2003, CornerStone announced that its auditor, Deloitte & Touche, could not reaudit Cornerstone's previous financial filings, citing irreconcilable errors and missing supporting documents. CornerStone's common units traded as high as $22 per share during the Class Period but declined to $0.35 per share by the end of the Class Period, erasing over $360 million in market capitalization.
If you purchased CornerStone securities during the Class Period, you may, no later than July 28, 2003, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in CornerStone securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action, please visit http://www.srk-law.com/dbjoinaclassaction.asp. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca