NEW YORK, Oct. 13, 2001 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Eastern District of Wisconsin on behalf of all purchasers of ShopKo Stores, Inc. ("ShopKo" or the "Company") (NYSE:SKO) securities between March 9, 2000 and November 9, 2000, inclusive (the "Class Period").
The Complaint charges defendants and certain of its executive officers with violations of the federal securities laws, including 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 materially false and misleading statements in press releases and SEC filings concerning ShopKo's integration of Pamida Holding Corp. ("Pamida"), ShopKo's financial results and business prospects. Specifically, the Complaint alleges that defendants failed to disclose that the consolidation of Pamida's distribution centers was extremely problematic and that the Company was experiencing significant shipping and inventory control problems. As a result, the price of the Company's common stock was artificially inflated throughout the Class Period. On November 9, 2000, however, the truth began to emerge when the Company disclosed that problems at Pamida's distribution centers contributed to a loss of ($0.23) per share for the third quarter of 2000, far below the $.02 to $.07 per share earnings projected by the Company. In response to this announcement, the price of ShopKo dropped to $4.3125 per share, a substantial decline from the Class Period high of $20.50.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired ShopKo securities between March 9, 2000 and November 9, 2000, 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 ShopKo securities during the Class Period, you may, not later than December 10, 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 Avozz@faruqilaw.com www.faruqilaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca