ATLANTA, Nov. 19, 2003 (PRIMEZONE) -- The Law Firm of Holzer Holzer & Cannon, LLC announced today that it has filed a class action lawsuit in the United States District Court for the Southern District of Georgia, on behalf of persons who purchased or otherwise acquired publicly traded securities of Friedman's Inc. ("Friedman's" or the "Company") (NYSE:FRM) during the period between December 20, 2002 and November 11, 2003, inclusive (the "Class Period") against Friedman's Inc., Victor M. Suglia and Bradley J. Stinn. The class action lawsuit was assigned civil action number CV403-228. A copy of the complaint filed in this action is available from the Court, or can obtained by emailing mfistel@holzerlaw.com.
The complaint alleges that Defendants issued false and misleading statements with respect to the Company's results and business model, resulting in the Company materially overstating its earnings for the fiscal years 2000 through 2002 and the first three quarters of 2003. Specifically the complaint alleges that the Company's allowance for doubtful accounts was inadequate, that the Company's credit losses were significantly higher than its reserves and higher than the Company represented, and that the Company failed to properly write off uncollectable receivables.
On November 11, 2003, Friedman's stunned the market by warning about its future performance, and the material adverse impact of "increasing its allowance for doubtful accounts." The Company also revealed that it placed its Chief Financial Officer, Victor Suglia on administrative leave. Shares of Friedman's fell approximately 40% on very heavy volume.
If you bought Friedman's common stock between December 20, 2002 and November 11, 2003, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than January 13, 2004. If you are a member of this class and wish to join this class action, or if you have any questions concerning this Notice of Filing or your rights as a potential class member, or if you wish to serve as a lead plaintiff in this lawsuit, you may call or e-mail the attorney below. Any member of the purported class may move the Court to serve as lead plaintiff through Holzer Holzer & Cannon, LLC, or other counsel of their choice, or may choose to do nothing and remain an absent class member.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca