COLCHESTER, Conn., March 31, 2006 (PRIMEZONE) -- On March 31, 2006, Scott+Scott, LLC, filed a securities class action on behalf of securities purchasers of Coca-Cola Enterprises, Inc. (NYSE:CCE) ("CC Enterprises" or the "Company") during the period October 15, 2003 through July 28, 2004, inclusive (the "Class Period"), seeking remedies under the Securities Exchange Act of 1934. CC Enterprises engages in the manufacture, distribution, sale and marketing of nonalcoholic beverages primarily under agreements with The Coca-Cola Company. During the Class Period, the complaint alleges, defendants issued numerous false and misleading public statements regarding the basis for the Company's historic financial progress, enabling Company insiders to dump their Company securities at artificially inflated prices. Moreover, as alleged, CCE shareholders were duped into purchasing CCE shares at these artificially inflated prices.
If you purchased CCE securities during the Class Period and wish to serve as lead plaintiff in the action, you must move the court no later than April 17, 2006. Any purported class member may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott partner David R. Scott (drscott@scott-scott.com, (800) 404-7770, (860) 537-5537) or visit the Scott+Scott website, www.scott-scott.com, for more information. There is no cost or fee to you.
According to the complaint, during the Class Period, defendants failed to disclose that they were "channel stuffing" their inventory to conceal that soft drink sales were no longer as robust as earlier announced. Defendants' false and misleading statements concealed that the Company's 2004 financial forecasts remained unachievable and that it would be difficult for analysts and investors to accurately determine the Company's potential for revenues and growth for present and future quarters, as a result of the Company's channel-stuffing practices. Consequently, as alleged, investors purchased their CCE shares at artificially inflated prices, while Company insiders were able to sell over $96.7 million of Company securities.
Finally, on July 29, 2004, the Company warned investors that significant shortfalls against its North American and European sales targets would adversely impact results, when measured against its previous 2004 sales and revenues guidance and forecasts. On the news, the price of CC Enterprises stock plunged nearly 17.5%, closing on July 29, 2004 at $20.63, on record volume of more than 18.5 million shares.
The plaintiff is represented by Scott+Scott, a firm with significant experience in prosecuting investor class actions. The firm dedicates itself to client communication and satisfaction and currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca