NEW YORK, June 23, 2003 (PRIMEZONE) -- A class action lawsuit has been commenced by Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) against Sara Lee Corporation ("Sara Lee" or the "Company") (NYSE:SLE), the Company's Chief Executive Officer and the Company's Chief Financial Officer, on behalf of investors who purchased the securities of Sara Lee during the period between August 1, 2002 and April 24, 2003, inclusive (the "Class Period").
The lawsuit charges that defendants issued false and misleading statements concerning the Company's business operations and financial performance which caused Sara Lee's stock price to become artificially inflated. In particular, the complaint alleges that defendants failed to disclose that (a) despite a "Reshaping program" designed to improve the Company's competitive structure, Sara Lee was burdened with numerous poorly performing businesses, and did not have "the right mix of businesses" in that several material businesses were "not growing" or were "in significant decline"; (b) the Company's underperforming businesses were causing the Company to experience declining results and, as a result, Sara Lee would not be growing at the rates represented to the market; (c) due to a lack of proper internal controls, Sara Lee failed to recognize or identify those businesses or brands among its portfolio of companies that would need to be "run dramatically differently in the future;" and (d) based on the foregoing, Sara Lee lacked any reasonable basis upon which to project that it would experience "double-digit operating income increases" for fiscal 2003 among its "five lines of business" or have diluted EPS for fiscal 2003 in the range of $1.54 to $1.60.
On April 24, 2003, Sara Lee issued a press release announcing its financial results for the Third Quarter, the period ending March 31, 2002. The Company announced that it was reducing earnings for fiscal 2003 to $1.50 to $1.52 per share, significantly below consensus expectations of $1.59.
If you purchased the securities of Sara Lee during the Class Period, you have until July 14, 2003 to ask the Court to appoint you as lead plaintiff for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, or if you would like to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca