LOS ANGELES, Nov. 23, 2005 (PRIMEZONE) -- Glancy Binkow & Goldberg LLP -- representing shareholders of Tempur-Pedic International Inc. -- announces 13 days remaining to move to be a lead plaintiff in the shareholder lawsuit. All persons and institutions who purchased securities of Tempur-Pedic International, Inc. ("Tempur-Pedic" or the "Company") (NYSE:TPX) between April 22, 2005 and September 19, 2005, inclusive (the "Class Period"), may move the Court not later than December 6, 2005, to serve as lead plaintiff; however, you must meet certain legal requirements.
If you wish to receive a copy of the Complaint, or have any questions concerning your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150, Toll Free at (888) 773-9224, or e-mail to info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Tempur-Pedic and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning Tempur-Pedic's financial performance and prospects caused the Company's stock price to become artificially inflated, inflicting damages on investors. Tempur-Pedic designs and sells "visco-elastic" mattresses which are made of foam-like material that contours to the shape of an object, and are marketed as more comfortable and orthopedically superior to traditional innerspring mattresses. Although Tempur-Pedic had been unchallenged in its niche and grew its business rapidly, defendants allayed growing investor concerns by reiterating aggressive sales and earnings guidance for 2005, even after the Company had begun to experience a slowdown, and by misrepresenting that Tempur-Pedic's business was not suffering from the effects of competition. The Complaint alleges defendants' Class Period representations were materially false and misleading when made because they failed to disclose that: (a) demand for Tempur-Pedic's products was slowing as competitors were gaining a foothold in the visco-elastic market; (b) defendants' repeated express assurances that the competition was not having a materially negative 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 so insiders could sell their shares; and (c) 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.
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 -- or at least not a large enough impact to lower its 2005 guidance reiterated less than a month before this announcement. In response to this announcement, the price of Tempur-Pedic common stock plummeted, falling 28.5% in one day, from $16.38 per share on July 19, 2005, to $11.70 per share on July 20, 2005, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting shareholder lawsuits, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than December 6, 2005, to serve as lead plaintiff; however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca