LITTLE ROCK, Ark., March 16, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that it has filed a class action in the United States District Court for the District of Minnesota on behalf of all individuals and institutional investors that purchased the common stock of Department 56, Inc. ("Department 56" or the "Company") (NYSE:DFS) between February 24, 1999 and April 26, 2000 inclusive (the "Class Period").
The complaint charges Department 56 and Susan Engel, chairwoman of the board of directors and chief executive officer of the Company with violating the federal securities laws by making a series of materially false and misleading statements concerning the Company's financial results during the Class Period. Specifically, the complaint alleges that the Company's reported financial results during the Class Period were the product of information derived from the Company's failed enterprise-wide management information system, and as such were materially false and misleading. The Company's failed management information system, among other things, was used to process orders, shipping, and billing. As a result of the failure of the system, the Company was forced to announce that it was experiencing a massive accounts receivables problem and that it had placed a "high-level" of orders on hold for customers with overdue bills. In addition, it was announced that the Company had depleted its $18 million bad debt and claims reserve and had to add $12 million thereto. The complaint alleges that as a result of these false and misleading statements the price of Department 56 common stock was artificially inflated throughout the Class Period, causing plaintiff and the other members of the Class to suffer damages.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you must meet certain requirements and take appropriate action by May 4, 2001. You are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Sue Null, Charlie Gastineau or Jackie Addison P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca