NEW YORK and SEATTLE, Sept. 5, 2007 (PRIME NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP and Keller Rohrback L.L.P. today filed a class action lawsuit in the United States District Court, Western District of Washington, on behalf of all persons who purchased the common stock of Jones Soda Company ("Jones Soda" or the "Company") (Nasdaq:JSDA) between the period of November 1, 2006, and August 2, 2007, inclusive (the "Class Period"), against the Company and certain of its officers and directors, alleging violations under Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act"), 15 U.S.C. #78j(b), and the rules and regulations promulgated thereunder by the SEC, including Rule 10b-5, 17 C.F.R. #240.10b-5 (the "Class").
The Complaint alleges that throughout the Class Period, defendants issued numerous, positive but false statements to investors and the market at large that misrepresented the Company's growth prospects and ability to penetrate new markets. Defendants further issued extremely positive statements about the Company's new distribution and production agreement with National Beverage Corporation and agreements with numerous major retailers to garner precious shelf space for the Company's products. Defendants stated that each of these agreements was cemented and that the Company was poised to realize the financial benefits thereof.
Moreover, Defendant Peter M. von Stolk, the Company's founder, President, Chief Executive Officer and a Director issued numerous statements that led the market to believe that major retailers had stocked the Company's sodas on their shelves for sale, or that the sodas would be stocked on these retailers' shelves for sale by a date certain. These statements, however, were false or were issued with such a degree of severe recklessness to render them actionable.
On August 3, 2007, the Company announced that earnings for the quarter ended June 30, 2007 were well below Wall Street's expectations. In connection with the release (and despite his earlier promises), Mr. van Stolk said that the Company's canned products were not on enough store shelves in time for peak summer sales, which began during the Memorial Day weekend.
This news caused the Company's stock to plummet nearly 23 percent in after-hours trading to $11.70 a share, causing stockholders to suffer significant damages.
Moreover, as detailed in the Complaint, during an 85-day period this last spring, Mr. van Stolk and five of the six members of the board sold huge amounts of their holdings of Jones Soda while touting the Company's aggressive expansion plan and new arrangements with major retailers. The truth of the matter was that the Company's plan was not on pace as disclosed. The Company's beverages were not getting on shelves in time for the summer sales bump. Costs associated with the Company's new "can" were significantly impacting earnings and Mr. van Stolk falsely portrayed the Company in an overly positive light despite facts that he knew to the contrary. Indeed, as detailed in the Complaint, he stated during a conference call with analysts that he saw major sales data from retailers on a daily basis. Accordingly, he knew at all relevant times that the Company's products were not on the shelves and thus not being sold at a pace that comported with his public statements concerning the Company's penetration into the $66 billion carbonated soft drink market.
The case name is styled Benford v. Jones Soda Company, et al. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com or the Keller Rohrback L.L.P. website at www.krclassaction.com.
If you purchased Jones Soda common stock during the Class Period, you may request that the Court appoint you as lead plaintiff by Monday, November 5, 2007.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wolf Haldenstein or Keller Rohrback, or other counsel of your choice, to serve as your counsel in this action.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 70 attorneys in various practice areas, and offices in Chicago, New York City, San Diego, and West Palm Beach. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
Keller Rohrback L.L.P. is a law firm headquartered in Seattle that has successfully represented shareholders and consumers in class action cases for over two decades. Its trial lawyers have obtained judgments and settlements on behalf of clients in excess of seven billion dollars.
If you wish to discuss this action or have any questions, please contact any member of our team: (1) Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (Gregory M. Nespole, Esq. or Derek Behnke), via e-mail at classmember@whafh.com, nespole@whafh.com, or visit our website at www.whafh.com; or (2) Keller Rohrback L.L.P. at 1201 Third Avenue, Seattle, Washington 98101, by telephone, toll-free at (800) 776-6044 (attorneys Elizabeth Leland or Juli Farris or paralegal Alizabeth Rasmussen), via e-mail at investor@kellerrohrback.com, or online at www.krclassaction.com. All e-mail correspondence should make reference to Jones Soda.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca.