HARTFORD, Conn., Dec. 19, 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 District of Minnesota on behalf of all persons who purchased the common stock of Nash Finch Co. (Nasdaq:NAFC) between Feb. 24, 2005 and Oct. 20, 2005, inclusive (the "Class Period"). Also included are all those who acquired Nash Finch through its acquisition of Roundy's Distribution Center ("Roundy's").
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, defendants announced a $220 million acquisition of Roundy's which, according to defendants, was expected to add nearly $1 billion in yearly sales. Throughout the Class Period, defendants failed to disclose that (i) the Company was operating far below expectations; (ii) that the Company had significantly under-reserved for the Roundy's acquisition; (iii) the integration of Roundy's was not proceeding according to plan; and (iv) Nash Finch's core business was underperforming guidance. While investors were unaware of the conditions that were adversely affecting Nash Finch, defendants sold more than $300 million in notes in a private placement and Company insiders sold more than $17 million of their Nash Finch shares.
October 20, 2005, Nash Finch announced significantly lower fiscal 2005 earnings guidance of $3.00 to $3.25 per share, from its previous guidance of $3.70 and $3.89. The Company attributed the lowered guidance to "a decline in retail gross profit margins, primarily reflecting inadequate execution in pricing across the Company's retail operations; depressed wholesale gross profit margins principally relating to manufacturer promotional spending; and higher than expected acquisition integration costs." On this news, the price of Nash Finch stock fell $12.76 per share, to close at $30.04 on the next trading day.
If you are a member of the class, you may, no later than Feb. 17, 2006, 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