CHICAGO, Dec. 4, 2003 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that a class action lawsuit is pending in the United States District Court for the Northern District of Georgia on behalf of purchasers of the securities of Friedman's Inc. (NYSE:FRM) ("FRM" or the "Company") between January 26, 2000 and November 11, 2003, inclusive ("Class Period").
It has been alleged that FRM and certain of its officers and directors violated the federal securities laws by issuing a series of materially false and misleading statements to the market resulting in the Company materially overstating its earnings for the fiscal years 2000 though 2002 and for the first 3 quarters of 2003. These misstatements have had the effect of artificially inflating the market price of FRM's securities and have triggered investigations by the Department of Justice and the Securities and Exchange Commission.
Much Shelist is currently investigating these claims. If you wish to discuss your rights and interests, or if you have information relevant to the lawsuit, you may contact Carol V. Gilden or Louis A. Kessler at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to FRM.
Specifically, the Complaint alleges that throughout the Class Period, the Company failed to disclose that: 1) the Company's allowance for doubtful accounts was woefully inadequate; 2) FRM's credit losses during the Class Period were significantly higher than its reserves and higher than defendants publicly represented; and 3) Defendants failed to properly write-off uncollectible receivables, and materially overstated FRM's financial results by maintaining known uncollectible accounts as assets during the Class Period.
According to the Complaint, on November 11, 2003, FRM shocked the market when it issued a press release announcing that it would be increasing its allowance for doubtful accounts. The Company reported that the both the SEC and the Justice Department had initiated investigations into its accounting practices and revealed that it was placing its Chief Financial Officer, Victor Suglia, on administrative leave. The Complaint also alleges that prior to the disclosure of this adverse information, defendants completed an offering of FRM's common stock and certain FRM insiders sold more than $2 million of their own stock at artificially inflated prices. On November 12, 2003, in response to this news, the price of Friedman's common stock plunged more than 40% on very heavy volume.
If you purchased FRM securities during the Class Period and if you meet certain other legal requirements, you may file a motion in the court where the lawsuit has been filed to serve as a lead plaintiff. You must file your motion no later than January 13, 2004.
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 whether or not to serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.