MINNEAPOLIS, Sept. 7, 2005 (PRIMEZONE) -- Zimmerman Reed law firm announces its filing this week of a class action lawsuit in the United States District Court for the District of Minnesota on behalf of shareholders in Buca, Inc. The class action is on behalf of all persons who purchased the common stock of Buca, Inc. (Nasdaq:BUCA) ("Buca" or the "Company") during the period of February 6, 2001, through and including March 11, 2005, and who were damaged by the decline of the Buca stock. The shareholders are seeking remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). The action is against Buca, Inc., Joseph Micatrotto, Pete Mihajlov and Greg A. Gadel ("Defendants").
The complaint alleges that Defendants caused the Company to issue false and misleading financial statements which misrepresented: (1) the Company's financial position by overstating the Company's income, by understating its lease costs through improper capitalization and deferral, by improperly capitalizing ordinary and routine repairs and maintenance and by understating its insurance reserves; (2) the Company's revenues by improperly including in revenues the value of meals provided to employees and provided for promotional purposes; and (3) that the Company's financial statements were prepared in accordance with the Generally Accepted Accounting Principles ("GAAP") when in fact they were not. The complaint further alleges that the Company lacked adequate internal controls and, therefore, was unable to ascertain and present the true financial condition of the Company.
If you are a member of the class, as defined above, and experienced a significant loss, you may request that the Court appoint you as lead plaintiff. Lead Plaintiff motions must be filed no later than October 11, 2005. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery in any way is not, however, affected by the decision of whether or not to serve as a lead plaintiff. You may retain Zimmerman Reed, or other counsel of your choice, to serve as your counsel in this action.
Zimmerman Reed is a Minneapolis based law firm that is active in major complex litigations and class actions pending in federal and state courts throughout the United States. Zimmerman Reed has taken a leading role in many important actions on behalf of defrauded investors and consumers.
If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please visit www.zimmreed.com/Buca or call Carolyn Anderson or Bob Moilanen at 612.341.0400.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca