NEW YORK, Aug. 27, 2004 (PRIMEZONE) -- You are hereby notified that a Class Action has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of Bennett Environmental, Inc. (AMEX:BEL) ("Bennett" or the "Company") during the period June 2, 2003 through July 21, 2004 (the "Class Period").
The Complaint charges that defendants violating the federal securities laws by misrepresenting the financial condition of the Company to the public during the Class Period.
The Complaint further charges that at the beginning of the Class Period the Company announced 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, the Company issued positive statements regarding the Phase III Contract and the Company's financial growth and progress. In reality, however, the Company 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.
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 the Company's stock fell $2.13 (21%) from $9.93 on July 21, 2004 to close at $7.80 on July 22, 2004.
Plaintiff is represented by the law firm of Squitieri & Fearon, LLP which has significant experience prosecuting class actions on behalf of investors and shareholders.
If you are a member of the class described above, you may, not later than September 27, 2004, move the court to serve as lead plaintiff of the Class, if you so choose. 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 members' 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.
If you wish to discuss this action or have any questions concerning this notice or your rights or interest, please contact plaintiff's counsel, Stephen J. Fearon, Jr. of Squitieri & Fearon, LLP at (212) 421-6492 Stephen@ sfclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.