NEW YORK, Jan. 20, 2005 (PRIMEZONE) -- Goodkind Labaton Rudoff & Sucharow LLP filed a class action lawsuit on January 19, 2005 in the United States District Court for the Western District of Washington, on behalf of persons who purchased or otherwise acquired publicly traded securities of Shurgard Storage Centers, Inc. ("Shurgard" or the "Company") (NYSE:SHU) between May 9, 2001 and March 26, 2004, inclusive, (the "Class Period"). The lawsuit was filed against Shurgard, Charles K. Barbo and Harrell L. Beck ("Defendants").
If you are a member of this class you can view a copy of the complaint and fill out a plaintiff's certification online at http://www.glrslaw.com/get/?case=Shurgard
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that during the Class Period, Defendants materially misled the investing public by issuing false and misleading statements regarding the business and financial results of Shurgard. More specifically the complaint alleges: i) the Company lacked sufficient internal controls and therefore was unable to ascertain its true financial standing; ii) the Company's U.S. owned entities should have been accounted for using a consolidated accounting method since the inception of each entity; iii) the Company's European operations incurred operating losses which were not supported but sufficient evidence of future profitability to recognize loss carry forwards; iv) net income for 2001, 2002 and for the nine-month period ended September 30, 2003 had been seriously overstated due to the improper accounting for the Tax Retention Operating Lease; v) because of these errors, the value of the Company's balance sheet and income statement had been materially overstated at all relevant times; vi) Shurgard's quarterly and annual filings and press releases had not conformed to Generally Accepted Accounting Principles ("GAAP"), and; vii) at the time the Company presented its earnings guidance, it knew or should have known that it had no adequate basis to make those statements.
On March 26, 2004 Shurgard began to reveal the extent of its accounting irregularities by announcing that it would be unable to file its Form 10-K for the year ended December 31, 2003. It further stated that as a result of its audit process certain accounting adjustments having a material effect on reported financials would have to be made. The on May 17, 2004, Shurgard announced that management had reviewed previously reported historical financial data and related descriptions for certain accounting errors. Shurgard announced that it had conducted a re-audit of the financial statements for the years ended December 31, 2001 and 2002 and for the quarters ended March 31, June 30, September 30, 2003 and 2002 as well as the quarter ended December 21, 2002. It also indicated that it had incorrectly assessed certain accounting policies applied to its consolidated financial statements which were required to be restated. In addition, the Company's newly appointed auditors, PricewaterhoseCoopers, had identified other accounting errors impacting prior periods which were required to be restated. Shurgard's shares fell to $33.30 per share in response to the news that the Company's previously-reported financial results, which had already been restated, may not in fact be what they seemed.
Plaintiffs are represented by the law firm of Goodkind Labaton Rudoff & Sucharow LLP. Goodkind Labaton is one of the country's premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts. Goodkind Labaton was recently ranked fourth in total recoveries in 2003 among the top 50 plaintiffs' law firms by Institutional Shareholder Services (ISS), the world's leading provider of proxy and corporate governance services. Notably, Goodkind Labaton recovered over half a billion dollars for its clients in the past two years.
If you bought Shurgard securities between May 9, 2001 and March 26, 2004, inclusive, you may qualify to serve as Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than sixty days from today. If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, please contact one of our representatives or Christopher Keller, Esq. at 800-321-0476.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.