NEW YORK, June 4, 2001 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Southern District of Ohio on behalf of all purchasers of The Kroger Co. ("Kroger" or the "Company") (NYSE:KR) common stock between December 5, 2000 and March 2, 2001, inclusive (the "Class Period").
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Among other things, plaintiff claims that defendants issued a series of false and misleading press releases concerning Kroger's financial condition and business prospects. Specifically, the complaint alleges that the company has overstated earnings and income as a result of the wrongful manipulation of earnings at the Company's "Ralphs" subsidiary. As a result, the price of the Company's common stock was artificially inflated throughout the Class Period. On March 5, 2001, however, Kroger announced that it would have to restate earnings back to its fiscal 1998 year as a result of improper accounting practices at its Ralphs subsidiary. Besides admitting that Ralphs had been overstating earnings in violation of Generally Accepted Accounting Principles ("GAAP"), defendants admitted that they were aware of the misconduct since September of 2000.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Kroger securities between December 5, 2000 and March 2, 2001, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you purchased Kroger securities during the Class Period, you may, not later than July 15, 2001, move the court to serve as lead plaintiff of the class, if you so choose. In order 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, please contact:
ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail (FaruqiLawAV@aol.com)
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca