HARTFORD, Conn., Oct. 10, 2005 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Eastern District of Kentucky on behalf of all persons who purchased the publicly traded securities of Tempur-Pedic International, Inc. (NYSE:TPX) ("Tempur-Pedic") between April 22, 2005 and September 19, 2005 (the "Class Period").
The Complaint alleges that Tempur-Pedic violated federal securities laws by issuing false or misleading public statements. Specifically, defendants reiterated aggressive sales and earnings guidance for 2005, even after Tempur-Pedic had begun to experience a slowdown. During the Class Period, defendants' failed to disclose the following adverse facts: (i) demand for Tempur-Pedic's products was slowing as competitors were gaining a foothold in the visco-elastic market; (ii) defendants' repeated express assurances that the competition was not having a materially negative, or any impact on the Company, even in response to express concerns raised by analysts, were untrue and provided false comfort to investors while inflating the price of Tempur-Pedic stock; and (iii) in light of increasing competition that was already having a noticeable effect on the Company's business, defendants' guidance, reiterated on July 21, 2005, lacked any reasonable basis. During the Class Period, insiders and entities associated with insiders, sold a total of 5,620,591 shares of Tempur-Pedic common stock, for proceeds of $131,910,207.
On September 19, 2005, Tempur-Pedic issued lower guidance for 2005, which it attributed to a number of factors, including competition that it had said was not and would not have a negative impact, at least not one large enough to cause it to lower its 2005 guidance. On this news, Tempur-Pedic common stock plummeted 28.5 percent to $11.70 per share on July 20, 2005.
If you are a member of the class, you may, no later than December 6, 2005, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.