HARTFORD, Conn., Feb. 6, 2006 (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 Southern District of Florida on behalf of all persons who acquired the common stock of Applica Incorporated ("Applica" or the "Company") (NYSE:APN) between November 4, 2004 and April 28, 2005, inclusive, (the "Class Period").
The Complaint alleges defendants violated federal securities laws by issuing a series of materially false statements regarding Applica's financial condition. Specifically, defendants failed to disclose that: (i) Applica was experiencing decreasing demand for its products. In particular, Tide(tm) Buzz(tm) Ultrasonic Stain Remover and Home Cafe(tm) single cup coffee maker, were not meeting internal expectations; (ii) Applica was materially overstating its net worth by failing to timely write down the value of its inventory which had become obsolete and unsaleable; (iii) Applica was experiencing higher product warranty returns, which it had not appropriately reserved for; and (iv) Applica's financial statements issued during the Class Period were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP") and therefore were materially false and misleading.
The Complaint further alleges that, on April 20, 2005, defendants revealed that the Company would not come near achieving the guidance they had previously sponsored and/or endorsed, that Applica's business was suffering from numerous adverse factors and that the Company was marking down inventory and experiencing increased warranty expenses. Then, on April 28, 2005, defendants further detailed the impact of these adverse factors on Applica's business. These belated disclosures had an immediate, adverse impact on the price of Applica shares.
If you are a member of the class, you may, no later than April 4, 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.