BALA CYNWYD, Pa., Jan. 11, 2002 (PRIMEZONE) -- A shareholder sued ACLN, Ltd. (NYSE:ASW) claiming that the company misled investors about issuing a series of material misrepresentations to the market during the Class Period, thereby artificially inflating the price of ACLN securities, as alleged in a complaint filed by the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the Southern District of New York and seeks damages for violations of federal securities laws on behalf of all investors who bought ACLN, Ltd. securities between June 29, 2000 and December 20, 2001 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of ACLN, Ltd. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at www.sbclasslaw.com.
The complaint alleges that the Belgium-based ACLN, Ltd., Joseph Bisschops ("Bisschops"), Aldo Labiad ("Labiad") and Alex De Ridder ("Ridder") issued a series of material misrepresentations to the market during the Class Period, thereby artificially inflating the price of ACLN securities. Beginning on June 29, 2000, and continuing throughout the Class Period, defendants issued multiple press releases and filed quarterly and annual reports with the SEC which highlighted the Company's growth and strong financial performance. As alleged in the Complaint, these statements were materially false and misleading because they failed to describe the true state of financial affairs at the Company. Specifically, the complaint charges that defendants: (a) failed to disclose certain self-dealing transactions between defendants Bisschops and certain private entities which he controlled; (b) overstated the Company's assets by listing a shipping vessel, the Sea Atef, as an asset of the Company when, in fact, the Company did not own the Sea Atef; (c) understated the Company's selling, general and administrative expenses, causing the Company's net income to be overstated; and (d) violated Generally Accepted Accounting Principles ("GAAP") and the Company's own stated policy with regard to recognition of revenue by reporting revenue for the cars that it sold as soon as the ship carrying the cars left the port and not when the shipment was completed.
The truth about these statements finally came to light on December 20, 2001, in an article published by Herb Greenberg on TheStreet.com. In response to the questions raised in Greenberg's article, shares of ACLN plunged 64%, falling $16.71 to close at $9.40 per share.
If you purchased ACLN, Ltd. securities during the period June 29, 2000 and December 20, 2001, you may be a member of the class and have until February 19, 2002 to move the court to become a lead plaintiff. To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.