NEW YORK, Sept. 21, 2005 (PRIMEZONE) -- Roy Jacobs & Associates today announced that purchasers of Prestige Brands Holdings, Inc. ("Prestige" or the "Company") (NYSE:PBH) have only 12 days left to move for Lead Plaintiff. If you purchased Prestige securities during the Class Period, which is April 1, 2005 through July 27, 2005, you may qualify to serve as Lead Plaintiff on behalf of the Class. Motions for appointment to the Lead Plaintiff position must be filed no later than October 3, 2005. You are not required to have sold your Prestige shares in order to claim damages, or to serve as Lead Plaintiff.
For further information, you may call toll free, (888) 884-4490, or contact Roy Jacobs & Associates by e-mail by writing to classattorney@pipeline.com.
This securities fraud class action is pending in the United States District Court for the Southern District of New York against Prestige, Peter C. Mann, its CEO, and Peter J. Anderson, its CFO. The Complaint alleges that defendants misrepresented the success of the Company's flagship product, the over-the-counter wart remover, Compound W, by repeatedly stating that it was selling well and there was every expectation that it would continue to do so. The positive statements continued throughout the Class Period, and Prestige stock reached prices as high as $21 per share.
Unbeknownst to the Class, Wal-Mart, the Company's primary mass distributor, had purchased a significant inventory of Compound W in or about late December 2004 for an early 2005 promotion. By April 1, 2005, the beginning of the Class Period, defendants knew that the Wal-Mart promotion had fallen seriously short of its goals, leaving Wal-Mart with significant excess inventory of Compound W. Defendants failed to retract, and even reiterated their earlier projections, and concealed the unfavorable results of the Wal-Mart sales promotion.
On July 27, 2005, Prestige shocked the market by announcing sales for the first quarter of fiscal 2006, which ended on June 30, 2005, that were 6 percent below sales for the comparable quarter of the previous year. When Prestige shares opened for trading the next day, shares dropped from a previous closing price of $20.04 to a close of $11.90, on extraordinary trading volume of 14.7 million shares. On July 28, 2005, defendant Mann finally admitted during a conference call that he knew that the Wal-Mart promotion had been unsuccessful, that Wal-Mart was carrying substantial excess inventory, and that the wart removal consumer segment had suffered a material 13 percent decline.
Please feel free to contact Roy Jacobs & Associates to discuss the pending action and your rights in this matter.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.