NEW YORK, Nov. 29, 2004 (PRIMEZONE) -- According to Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com), which 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"), investors have until Monday December 20, 2004 to seek appointment by the Court as one of the lead plaintiffs in this action.
The lawsuit alleges that defendants issued 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 Gas dropped dramatically, falling from $21.60 per share to close at $4.32 the following day.
If you purchased the securities of Star Gas during the Class Period, you have until Monday 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. 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.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca