NEW YORK, Feb. 11, 2004 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Middle District of Florida on behalf of all persons or entities who purchased or otherwise acquired Winn-Dixie Stores, Inc. ("Winn-Dixie" or the "Company") securities (Nasdaq:WIN) during the period from May 6, 2002 to January 29, 2004, both dates inclusive (the "Class Period"). The Complaint names Winn-Dixie Stores, Inc., Allen R. Rowland, Frank Lazaran, Richard P. McCook, and D. Michael Byrum, as defendants.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J. Belfi or Aaron D. Patton at Rabin, Murray & Frank LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at info@rabinlaw.com
The Complaint alleges that defendants violated section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the Securities and Exchange Commission. In particular, the Complaint alleges that defendants failed to disclose and/or misrepresented the following adverse facts, among others: (a) that Winn- Dixie's business operations were mismanaged and burning cash such that the Company was unable to reduce excess expenses when needed; (b) that the Company had no such strategic vision in place to enhance shareholder value and thus would not be able to sustain dividend payments to shareholders; (c) that the Company was unable to competitively market its Winn-Dixie product brand; (d) that Winn-Dixie was unable to gain a greater market share for its supermarkets; (e) that the loss of Canadian Imperial Bank of Commerce automated teller machines ("ATMs") would result in a decline in sales in stores that had these ATMs; and (f) that the Company recorded the carrying value of its durable assets at inflated levels and maintained inadequate reserves for self-insurance.
On January 30, 2004, Winn-Dixie announced net losses from sales and operations for its second quarter of fiscal 2004. The Company also announced major new initiatives designed to improve competitive market position and profitability and announced that it had to take an asset impairment charge of $36.4 million and an increase in self-insurance reserves of $21.4 million. News of this shocked the market. Shares of Winn-Dixie dropped 27.8%, or $2.53 per share, to close at $6.56 on January 30, 2004 on extremely heavy volume.
Plaintiff is represented by the law firm of Rabin, Murray & Frank LLP. Rabin, Murray & Frank LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Winn-Dixie securities during the Class Period described above, you may, no later than April 5, 2004, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. Contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Rabin, Murray & Frank LLP to further discuss this action, this announcement, or your rights or interests.