NEWARK, N.J., May 4, 2004 (PRIMEZONE) -- Zimmerman, Levi & Korsinsky, LLP today announced that it has commenced a securities lawsuit on behalf of shareholders who purchased the common stock of Megapro Tools, Inc. ("Megapro") and Spear & Jackson, Inc., the surviving entity of a merger between Spear & Jackson, Inc. and Megapro, ("SJCK" or the "Company") (OTCBB:SJCK) between January 30, 2002 and April 15, 2004, inclusive (the "Class Period"). The lawsuit was filed in the United States District Court for the Southern District of Florida.
The Complaint alleges that defendants violated federal securities laws by issuing a series of material misrepresentations to the market during the class period thereby artificially inflating the price of Megapro and SJCK securities. More specifically, the Complaint alleges that: (i) the defendants orchestrated a "pump-and dump" scheme to manipulate the share price of Megapro and SJCK stock by issuing false information to tout the stock to registered representatives and to broker-dealers around the country; (ii) the defendants used nominee offshore companies to illegally obtain over 1.2 million shares of Megapro and SJCK stock during 2002, some of which was obtained through the filing of a fraudulent Form S-8 registration statement; and (iii) the Company announced earnings projections for fiscal 2004 of $0.50 to $0.55 per share that it knew at the time were unrealistic.
On April 16, 2004, it was announced that the SEC filed a complaint and obtained a temporary restraining order against SJCK alleging that Chief Executive Dennis Crowley has been selling company stock in secret through brokerage accounts in the British Virgin Islands over the last two years.
If you purchased Megapro or SJCK stock between January 30, 2002 and April 15, 2004, you may move the court no later than June 20, 2004 to serve as a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. You may retain Zimmerman, Levi & Korsinsky, LLP, or other counsel of your choice, to serve as your counsel in this action.
For more information or to obtain a copy of the complaint and other information in order to join the lawsuit via E-mail or U.S. Mail, please contact:
Eduard Korsinsky, Esq. Zimmerman, Levi & Korsinsky, LLP 39 Broadway, Suite 1440, New York, N.Y. 10006 Tel. (212) 363-7500 Toll Free: (800) 835-4950 Email: ek@zlklaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca