NEW YORK, Nov. 11, 2004 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) has filed a class action lawsuit against Star Gas Partners, L.P. ("Star Gas" or the "Company") (NYSE:SGU) and two of the Company's senior officers, on behalf of all persons or entities who purchased the securities of Star Gas during the period between December 4, 2003 through October 18, 2004, inclusive (the "Class Period"). The case was filed in the United States District Court for the District of Connecticut.
The complaint alleges that Star Gas, a diversified home energy distributor and service provider, specializing in heating oil, propane, natural gas and electricity, and the Company's Chief Executive Officer, Irik P. Sevin, and Chief Financial Officer, Ami Trauber, violated the federal securities laws arising out of defendants' dissemination of false and misleading statements concerning the Company's operations, business model, financial results and growth prospects.
According to the Complaint, defendants caused Star Gas's securities to trade at artificially inflated levels through the issuance of false and misleading statements. As a result of this inflation, Star Gas was able to complete a secondary offering of 1.3 million common units and two note offerings totaling $65 million, raising net proceeds of $95 million during the Class Period. Specifically, defendants concealed from investors that the Company was experiencing massive delays in the centralization of its dispatch system, causing customers to flee to competitors, that the company's Petro heating oil division's process improvement program was not delivering the benefits claimed by Defendants, and that contrary to prior indications, the Company could not maintain profit margins in its heating oil segment.
On October 18, 2004, the Company indicated that results at its heating oil unit were expected to decline significantly, which would inhibit it from meeting borrowing conditions under its working capital credit line. In reaction to this news, shares of Star Glass dropped dramatically, falling from $21.60 per share to close at $4.32 the following day.
If you purchased the securities of IAC during the Class Period, you have until December 20, 2004 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.