MILWAUKEE, April 23, 2002 (PRIMEZONE) -- The law firm of Ademi & O'Reilly LLP announces that it has filed a class action lawsuit against Circuit City Stores, Inc. (NYSE:CC), alleging violations of the federal securities laws. The suit was brought on behalf of investors purchasing Circuit City stock between December 6, 2001 and February 22, 2002, inclusive. A copy of the complaint filed in this action is available from the Court, or can be viewed at http://www.ademilaw.com/circuitcity/
The action, numbered 3:02-CV-258, is pending in the United States District Court, Eastern District of Virginia, located at Lewis F. Powell Jr. United States Courthouse, 1000 East Main Street, Richmond, VA 23219, against defendants Circuit City and Alan W. McCollough. The Honorable James R. Spencer has been assigned to the case.
The Complaint alleges that the defendants issued materially false and misleading misrepresentations to the market, between December 6, 2001 and February 22, 2002, thereby artificially inflating the price of Circuit City securities. This practice violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The complaint alleges that defendants concealed that Circuit City was facing significant inventory shortages and was experiencing problems with its internal controls which would result in the Company having to incur additional expenses associated with the termination of leases and with the remodeling of almost half of its retail stores. When defendants belatedly disclosed these problems on February 22, 2002, the last day of the Class Period, the price of Circuit City stock plummeted over 33% to close at $16.08 per share.
If you bought the securities of Circuit City between December 6, 2001 and February 22, 2002, you may, no later than June 24, 2002, request that the Court appoint you as lead plaintiff. 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 Ademi & O'Reilly LLP, or other counsel of your choice, to serve as your counsel in this action.
Ademi & O'Reilly LLP are experienced securities litigators. We represent clients on a fully contingent basis with respect to attorneys fees and expenses. Further, clients have direct access to the principals of the firm, so that they have the best information regarding the progress in their case, and that their concerns are answered fully and promptly. If you wish to discuss this action with us, or have any questions concerning this notice of your rights and interests, please contact Ademi & O'Reilly, LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca