CORAL SPRINGS, Fla., Nov. 21, 2003 (PRIMEZONE) -- On November 14, 2003, a Securities Class Action was filed against Friedman's Inc. (NYSE:FRM), Victor M. Suglia, Bradley J. Stinn, Sterling B. Brinkley, and Douglas Anderson. The lawsuit, pending in the United States District Court for the Northern District of Georgia, was filed on behalf of purchasers of Friedman's Inc. common stock during the period between January 26, 2000 and November 11, 2003 (the "Class Period").
The complaint alleges that Friedman's and certain of its officers and directors issued a series of false and misleading statements regarding Friedman's financial 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: (1) the Company's allowance for doubtful accounts was sorrowfully inadequate; (2) the Company's credit losses were significantly higher than its reserves and higher than the Company represented; and (3) the Company failed to properly write off uncollectible receivables. Defendants' false and misleading statements caused the Company's stock to trade at artificially inflated prices.
On November 11, 2003, Friedman's took the market by surprise when it warned about its future performance and the material adverse impact of "increasing its allowance for doubtful accounts." As a result of governmental investigations into the Company's financial reporting practices, Friedman's also revealed that it placed its Chief Financial Officer, Victor Suglia, on leave. Shares of Friedman's common stock fell approximately 40% on very heavy volume.
If you bought the securities of Friedman's, Inc. between January 26, 2000 and November 11, 2003 and sustained damages, you may, no later than January 13, 2004 request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision of whether or not to serve as a lead plaintiff. You may retain Mager White & Goldstein, LLP, or other counsel of your choice, to serve as your counsel in this action.
Mager White & Goldstein has offices in Pennsylvania, Florida, and New Jersey. The firm's attorneys have been litigating complex commercial matters for over twenty years. The firm concentrates its practice in the areas of complex commercial litigation with particular emphasis on securities, antitrust, consumer protection, employment, civil rights and ERISA individual and class actions, as well as labor and employment advice, Lanham Act, trade disparagement, and other types of business tort litigation. Please visit the Mager White & Goldstein website (http://www.mwglawfirm.com) for more information about the firm.
If you wish to discuss the lawsuit against Friedman's with us, or if you have any questions about this notice or your rights and interests with regard to this case, please contact the following attorneys:
Jayne A. Goldstein
-or-
Abraham Rappaport
2825 University Drive Suite 350
Coral Springs, Florida 33065
954-341-0844 Telephone
866-274-8258 Toll Free
954-341-0855 Fax
Email: jgoldstein@mwg-law.com
arappaport@mwg-law.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca