PHILADELPHIA, Sept. 8, 2003 (PRIMEZONE) -- Law Offices Bernard M. Gross, P.C. (http://www.bernardmgross.com) announces that a class action lawsuit was commenced in the United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of CONSTAR, Inc. ("CONSTAR" or the "Company") (Nasdaq:CNST) securities in connection with or traceable to its November 2002 Initial Public Offering ("IPO") and who have been damaged thereby.
The action, numbered 03cv 5020, is pending against defendants Constar, Charles F. Casey -- director of the Company, William G. Little -- director of the Company, Michael J. Hoffman -- director of the Company, James C. Cook -- director of the Company, Alan W. Rutherford -- director of the Company, John W. Conway -- director of the Company, Angus F. Smith -- director of the Company, and Frank J. Mechura -- director of the Company. The case has been assigned to the Honorable Edmund V. Ludwig. A copy of the Complaint is available from the Court or can be viewed on the Law Offices Bernard M. Gross, P.C. website at www.bernardmgross.com.
The Complaint charges defendants with violations fo the Securities Act of 1933. Constar is a wholly owned subsidiary of Crown Cork & Seal ("Crown"). Crown is a leading supplier of packaging products to consumer marketing companies around the world. Constar's headquarters are located in Philadelphia, Pennsylvania.
In November 2002, Constar completed an IPO of 10.5 million shares of stock pursuant to a Prospectus/Registration Statement. The IPO, which was solely comprised of shares sold by Crown, was priced at $12 per share for total proceeds of $117 million after underwriting discounts and commissions. The Complaint alleges that the Prospectus/Registration Statement was materially false and misleading and failed to disclose, among other things, that: The Company was then experiencing an unseasonably low demand in its carbonated soft drink bottle business; the Company was then experiencing an adverse impact in the Company's revenue stream due to the "pass-through" of lower resin costs; the Company was then experiencing an adverse trend in the Company's conventional PET container shipments; the Company's management had changed its focus just prior to the IPO and purposely reduced its higher volume preforms, causing a Q4 revenue shortfall; and the Company's goodwill was impaired and defendants failed to timely take an impairment charge.
As this adverse information was disclosed, the Company's shares eventually plummeted to $5.00 per share. Investors who purchased shares traceable to the IPO based on Constar's representations, paying $12 per share for Constar stock, have suffered tens of millions of dollars in damages.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions. If you purchased securities of CONSTAR INTERNATIONAL, INC. in connection with or traceable to its November 2, 2002 Initial Public Offering ("IPO"), you may no later than November 4, 2003, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or rights or interests with respect to these matters,
Please contact: Law Offices Bernard M. Gross, P.C.
Susan R. Gross, Esq.
Deborah R. Gross, Esq.
1515 Locust Street, Suite 200
Philadelphia, PA 19102
Telephone: 866-561-3600
E-mail: susang@bernardmgross.com
or debbie@bernardmgross.com.
Website: http://www.bernardmgross.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca