COLCHESTER, Conn., May 18, 2005 (PRIMEZONE) -- Scott + Scott, LLC announces the filing of a securities class action in the United States District Court for the District of Wisconsin against Harley-Davidson, Inc. (NYSE:HDI) and individual defendants Jeffrey L. Bleustein and James L. Zeimer on behalf of all persons or entities, except for defendants, who purchased or otherwise acquired Harley-Davidson securities (the "Class") between January 21, 2004, and through April 14, 2005, inclusive (the "Class Period"). Plaintiff seeks remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). For more information about this case, you may contact the Court, or for a copy of the complaint, e-mail Neil Rothstein at nrothstein@scott-scott.com or Amy K. Saba at asaba@scott-scott.com. Mr. Rothstein and Ms. Saba may also be reached at 800/332-2259. Scott + Scott has offices in Connecticut, Ohio and California and specializes in complex litigation including securities fraud and represents foundations, individuals, corporations and pension funds worldwide.
Harley-Davidson designs, manufactures, markets and finances the purchase of heavyweight motorcycles, as well as sales of motorcycle parts, accessories, apparel and general merchandise and is the parent company for the group of companies doing business as Harley-Davidson Motor Company, Buell Motorcycle Company and Harley-Davidson Financial Services.
Plaintiff alleges that during the Class Period, defendants used false and misleading accounting measures designed to conceal its practice of stuffing of the distribution channels for the Company's motorcycle products. Defendants' scheme caused the price of Harley-Davidson stock to become and remain inflated, allowing defendants to sell nearly 740,000 shares of the stock at inflated prices for proceeds of approximately $45.9 million. On April 13, 2005, following the Company's shocking announcement of plans to reduce motorcycle production and product inventory levels, the Company's share price plummeted from its previous close of $58.77, for a two-day loss of $11.57, losing 19.6% of its value to close on April 14, 2005, at $47.20 on volume of over 51 million shares.
It is alleged that during the Class Period, defendants knew and concealed that: (a) quarterly and annual motorcycle shipment numbers to dealerships stated by the Company were "padded," in that the quantity of motorcycles shipped often exceeded retail demand; (b) quarterly and annual product shipment numbers stated by the Company represented a false and misleading measure of accounting for motorcycle sales and the Company's future prospects; (c) annual shipment numbers significantly overstated the Company's progress and prospects when compared against the Company's 2007 retail sales goal; (d) motorcycle shipments to the Company's dealerships had actually exceeded retail demand by tens of thousands of units in 2003 and 2004; (e) Company claims of 16,000 retail sales in excess of wholesale shipments during the first half of 2004 would not correct the Company's inventory problems; and (f) the planned 20% increase in wholesale shipments for 2004 could only worsen the Company's inventory problems; (g) despite claims of a "gap" between supply and demand, requiring a further increase in 2005 inventory levels, continued stuffing of the Company's distribution channels had already caused them to become saturated; and (h) the profitability of Company's finance division could no longer be counted on to offset the financial impact of continued growth of excess retail inventories, owing to the steep rise in the Company's 1Q 2005 credit losses.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from the date of this notice. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Scott + Scott. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member.
The firm is currently litigating major securities, antitrust and employee retirement plan cases throughout the United States and represents pension funds, charities, foundations, individuals and other entities worldwide -- in both class and non-class cases. Such cases the firm is working on include those securities cases against MBNA, Rhodia, GlaxoSmithKline, Coca Cola Corp. and more. Scott + Scott dedicates itself to client communication and satisfaction. Please visit our website (under reconstruction) at http://www.scott-scott.com to learn more about the firm, its practice and other cases. If you wish to discuss these actions with an attorney or have any questions concerning this notice, your rights or any matter within our expertise, please contact attorney Neil Rothstein or Amy K. Saba by calling 800-404-7770 (EST) or 800-332-2259 (PST). You can dial direct in California at 619-233-4565 or if needed, at Mr. Rothstein's cell at 619/251-0887.
Scott + Scott, LLC is based at 108 Norwich Avenue, Colchester, CT 06415; phone: 860/537-3818; fax: 860/537-4432. This release is issued in accordance with the applicable U.S. federal law.