NEW YORK, Aug. 16, 2004 (PRIMEZONE) -- An investor sued Bennett Environmental, Inc. ("Bennett" or the "Company") (AMEX:BEL) today, claiming the company and some of its top officers misled the investing public by failing to disclose that a material contract was in jeopardy and, as a result, the Company's contract backlog was artificially inflated.
Berman DeValerio Pease Tabacco Burt & Pucillo (www.bermanesq.com) filed the class action in the U.S. District Court for the Southern District of New York. The lawsuit seeks damages for violations of federal securities laws on behalf of all investors who bought Bennett common stock from June 2, 2003 through and including July 21, 2004 (the "Class Period").
To receive a copy of the complaint, you may contact the court, call the firm at (800) 516-9926 or go to http://www.bermanesq.com/pdf/BennettEnvironmental-Cplt.pdf.
The lawsuit claims that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder, including U.S. Securities and Exchange Commission ("SEC") Rule 10b-5.
The complaint names as defendants: the Company; John Bennett, who at all relevant times served as Bennett's Chairman; Allan Bulckaert, who at all relevant times served as the Company's President and Chief Executive Officer; Danny Ponn, who was at all relevant times the Chief Operating Officer and Vice President of Engineering; Richard Stern, who served as the Chief Financial Officer, Secretary, and Treasurer; and Robert Griffiths, who was at all relevant times Bennett's Vice President for U.S. Sales and Marketing.
The complaint alleges that, throughout the Class Period, defendants knew or recklessly disregarded that the U.S. Army Corps had withdrawn its consent of a material contract and that the contractor planned to rebid the contract. The complaint alleges that despite defendants' knowledge or reckless disregard that the contract was in jeopardy, defendants failed to disclose the information to investors and continued to tout the contract to the investing public.
On June 2, 2003, Bennett announced that it was awarded a contract to treat 300,000 tons of soil contaminated with wood treatment chemicals from Phase III of the Federal Creosote Superfund Site in New Jersey (the "Phase III Contract"). The Company reported that the Phase III Contract was valued at $200 million Canadian ("Cdn"), the largest contract in the Company's history. Throughout the Class Period, Bennett issued positive statements regarding the Phase III Contract and the Company's financial growth and progress. In reality, however, defendants knew or recklessly disregarded that the Phase III Contract was in jeopardy and, as a result, that the Company's contract backlog was artificially inflated, the lawsuits says.
On July 22, 2004, Bennett stunned the public when the Company issued a press release announcing that it accepted a new, reduced contract that was less favorable than the Phase III Contract, providing for a maximum of only 100,000 tons of soil, as compared to the 300,000 tons provided for in the Phase III Contract. In response to the Company's announcement, the value of Bennett's stock fell $2.13 (21%) from $9.93 on July 21, 2004 to close at $7.80 the following day.
If you purchased Bennett common stock from June 2, 2003 through and including July 21, 2004, you may wish to contact the following attorney at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Nicole R. Starr, Esq.
One Liberty Square
Boston, MA 02109
(800) 516-9926
law@bermanesq.com
If you wish to apply to be lead plaintiff in this action, a motion on your behalf must be filed with the court no later than September 27, 2004. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action, or you may submit information online at http://www.bermanesq.com/Securities/Signup1.asp?caseid=519.
Please note, you may also retain counsel of your choice and need not take any action at this time to be a class member.
Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations, and consumer fraud. The firm consists of 32 attorneys in Boston, San Francisco and West Palm Beach, Florida.
Contact - Nicole R. Starr, Esq. at (800) 516-9926.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca