HARTFORD, Conn., June 12, 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 District of Arizona on behalf of all persons who purchased or otherwise acquired the common stock of CSK Auto Corporation ("CSK Auto" or the "Company") (NYSE:CAO) between September 2, 2004 and March 24, 2006, inclusive, (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, defendants made misrepresentations concerning CSK Auto's earnings, assets and business prospects causing the Company's stock to trade at artificially inflated levels. While the Company's stock was artificially inflated due to defendants' false statements, certain officers and directors sold 75,106 shares of their CSK Auto stock for proceeds of $1.1 million.
Then on March 27, 2006, before the market opened, CSK Auto issued a press release announcing that it would postpone the release of its fourth quarter and fiscal 2005 financial results. The postponement was necessary to provide adequate time for the Company to conduct a thorough review of certain accounting errors and irregularities discovered in the course of its ongoing assessment of internal control over financial reporting and an internal audit. On this news, CSK Auto stock dropped $1.26 to $14.64 per share, after hitting a low of $14.40 per share.
If you are a member of the class, you may, no later than August 8, 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.