PHILADELPHIA, Nov. 26, 2001 (PRIMEZONE) -- The law firm of Berger & Montague, P.C. (www.bergermontague.com) announced today that it has entered an appearance in a class action in the United States District Court for the Eastern District of Wisconsin this week on behalf of all persons or entities who purchased securities of Shopko Stores, Inc. (NYSE:SKO) during the period from March 9, 2000 through November 9, 2000, inclusive (the "Class Period").
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between March 9, 2000 and November 9, 2000, thereby artificially inflating the price of ShopKo securities. Throughout the Class Period, as alleged in the complaint, defendants issued statements concerning the integration of its acquisition of Pamida Holding Corp.(the owner and operator of Pamida discount stores), Shopko's financial results and the Company's prospects. The Complaint alleges that these statements were materially false and misleading because they failed to disclose, among other things, that ShopKo was experiencing significant shipping and inventory control problems at Pamida's distribution centers. On November 9, 2000, ShopKo issued a press release announcing its earnings for the third quarter of 2000 reporting a loss of ($0.23) per share -- far below the $.02 to $.07 per share previously represented by the Company -- and revealed that the Company was experiencing problems at Pamida's distribution centers and that those problems accounted for ShopKo's reduced earnings.
The lawsuit seeks to recover losses suffered by individual and institutional investors who purchased the Company's securities during the Class Period at artificially inflated prices.
If you purchased Shopko, Inc. securities during the Class Period, you may, no later than December 10, 2001 move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in Shopko Stores, Inc. securities during the Class Period, please contact Berger & Montague, P.C. at www.bergermontague.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
The law firm of Berger & Montague, P.C. has over 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class interests." In Re: IKON Offices Solutions Securities Litigation. Civil Action No. 98-4286(E.D.Pa.) (partial settlement for $111 million approved May, 2000).
"...(Y)ou have acted the way lawyers at their best ought to act. And I have had a lot of cases ... in 15 years now as a judge and I cannot recall a significant case where I felt people were better represented than they are here... I would say this has been the best representation that I have seen." In Re Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 7709 (N.D. Ill.) (settled in 1999 for $220 million).
If you purchased Shopko Stores, Inc. securities and have any questions concerning this notice or your rights with respect to this matter, please contact:
Sherrie R. Savett, Esquire
Robin Switzenbaum, Esquire
Kimberly A. Walker, Investor Relations Manager
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
Phone: 888-891-2289 or 215-875-3000
Fax: 215-875-5715
Website: http://www.investorprotect.com
e-mail: InvestorProtect@bm.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.