LOS ANGELES, May 5, 2006 (PRIMEZONE) -- Glancy Binkow & Goldberg LLP, representing shareholders of The Estee Lauder Companies, Inc. (NYSE:EL), announces 24 days remaining to move to be a lead plaintiff in the shareholder lawsuit. All persons and institutions who purchased securities of The Estee Lauder Companies, Inc. ("Estee Lauder" or the "Company") between April 28, 2005 and October 25, 2005, inclusive (the "Class Period"), may move the Court not later than May 29, 2006, 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 Estee Lauder 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 Estee Lauder's financial performance and prospects caused the Company's stock price to become artificially inflated, inflicting damages on investors. Estee Lauder is a global manufacturer of skin care, makeup, fragrance and hair care products. The Complaint alleges that the Company's market share was decreasing at the commencement of the Class Period, and, rather than reverse this negative trend or fully disclose it, defendants launched a largely successful campaign that employed channel stuffing and the dissemination of materially false and misleading statements to prop up reported revenues and earnings and the Company's share price long enough for Company insiders to sell millions of their personally held Estee Lauder shares to unsuspecting investors at prices that were artificially inflated by defendants' false and misleading statements.
On September 19, 2005, defendants disclosed that the Company would not meet its guidance for the first half of fiscal 2006, causing the Company's stock to fall 9%, from $40.51 to $36.05 per share. Estee Lauder shares, however, continued to trade at artificially inflated levels until October 26, 2005 when defendants were forced to disclose fiscal first-quarter 2006 earnings of only $61.8 million, or $0.28 per share -- down 38% from the prior year's earnings of $95.7 million, or $0.41 per share -- on essentially flat sales. These results were well below analysts' revised consensus earnings estimate of $0.32 per share on revenue of $1.54 billion. Following this disclosure, the Company's share price fell to $30.71. By this time, Estee Lauder insiders had, during the Class Period, sold 3,380,399 shares of their Estee Lauder common stock to unwitting investors for proceeds of $88,077,150. 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 May 29, 2006, 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.