LOS ANGELES, March 4, 2004 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Middle District of Florida on behalf of a class (the "Class") consisting of all persons who purchased or otherwise acquired securities of Winn-Dixie Stores, Inc. ("Winn-Dixie"" or the "Company") (Nasdaq:WIN) between May 6, 2002 and January 29, 2004, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9161 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Winn-Dixie and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' omissions and material misrepresentations concerning Winn-Dixie's business operations and financial condition caused the Company's stock price to become artificially inflated, inflicting damages on investors. Winn-Dixie is one of the largest food retailers in the nation and operates more than 1,070 stores in the United States and Bahamas. The complaint alleges that during the Class Period defendants failed to disclose and/or misrepresented the following adverse facts, among others: (a) Winn- Dixie's business operations were mismanaged and burning cash such that the Company was unable to reduce excess expenses when needed; (b) the Company had no strategic vision in place to enhance shareholder value and thus would not be able to sustain dividend payments to shareholders; (c) the Company was unable to competitively market its Winn-Dixie product brand; (d) Winn-Dixie was unable to gain a greater market share for its supermarkets; (e) the loss of Canadian Imperial Bank of Commerce automated teller machines would result in a decline in sales in stores that had these ATMs; and (f) 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 fiscal 2004 second quarter. 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. This news shocked the market, causing Winn-Dixie's share price to plummet 27.8%, or $2.53 per share, to close at $6.56 on January 30, 2004, on extremely heavy volume. Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than April 5, 2004, 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 your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9161 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca