MILWAUKEE, May 28, 2005 (PRIMEZONE) -- Wisconsin firm Ademi & O'Reilly, LLP announces that it filed a securities class action in the United States District Court for the Eastern District of Wisconsin, Milwaukee Division against Harley-Davidson, Inc. (NYSE:HDI) and individual defendants Jeffrey L. Bleustein and James L. Zeimer on behalf of purchasers of Harley-Davidson securities (the "Class") between January 21, 2004, and through April 14, 2005, inclusive (the "Class Period"). For information, you may contact Guri Ademi at gademi@ademilaw.com or toll-free at 866/264-3995. You may review the complaint at http://www.ademilaw.com/cases/Harley.pdf.
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 July 19, 2005. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Guri Ademi at gademi@ademilaw.com or toll-free at 866/264-3995. 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.