HARTFORD, Conn., Sept. 26, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that it has filed a lawsuit seeking class action status in the United States District Court for the District of Connecticut on behalf of all persons who purchased the common stock of ADVO, Inc. ("ADVO" or the "Company") (NYSE:AD) between July 6, 2006 and August 30, 2006, inclusive, (the "Class Period").
The Complaint alleges that ADVO and certain of its officers and directors violated federal securities laws by issuing materially false and misleading statements regarding ADVO's business and financial results. Specifically, defendants concealed material adverse problems in ADVO's long-term financial health and intrinsic value in order to accomplish a merger which the Company had entered into with Valassis Communications, Inc. ("Valassis") to create the largest integrated media services provider in the nation. Valassis was acquiring all of ADVO's outstanding common stock in an all cash transaction. As a result of defendants' false statements, investors believed the acquisition would occur, causing ADVO's stock to trade at artificially inflated prices during the Class Period, reaching a high of $36.80 per share in August 2006. On August 30, 2006, Valassis announced that it had filed an action to rescind its merger agreement with ADVO. On this news, ADVO's shares fell to $28.59 per share.
According to the complaint, to accomplish the merger, ADVO officers and employees concealed material information, including that: (i) its business had deteriorated so badly that it would never be replaced; (ii) its financial internal controls were woefully inadequate; and (iii) its business was not nearly as successful as the market and Valassis had been led to believe.
If you are a member of the class, you may, no later than November 10, 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).
For more information about the case, its claims, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com. To view a copy of the complaint filed by Schatz & Nobel, or for more information about class action cases and Schatz & Nobel, please visit our website: www.snlaw.net.