NEW YORK, May 15, 2003 (PRIMEZONE) -- Notice is hereby given that a securities class action lawsuit was filed in the United States District Court for the Eastern District of Michigan on behalf of purchasers of Collins & Aikman Corporation ("CKC" or the "Company")(NYSE:CKC) securities, between August 7, 2001 and August 2, 2002 inclusive, (the "Class Period").
If you purchased CKC securities during the Class Period, you may, no later than May 23, 2003, move the court to serve as a lead plaintiff, provided you meet certain legal requirements. To serve as a Lead Plaintiff, you will be required to sign the Certification, as provided on our website at www.nyclasslaw.com/join.html.
The Complaint alleges that defendant 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 August 7, 2001 and August 2, 2002, thereby artificially inflating the price of CKC securities. Specifically, that Heartland Industrial Partners, L.P. ("Heartland") was a private equity firm, presenting itself as a specialist in leveraged buyouts. Heartland acquired a controlling interest in CKC in February 2002. Together Heartland and CKC acquired Textron Automotive Company's TAC-Trim division. Throughout the Class Period, Heartland and CKC reported that the TAC-Trim acquisition would double CKCs annual revenue and operating income by reducing costs through economies of scale.
In August 5, 2002 however, the Company reported a net loss of $20.3 million as compared to the prior year's net income of $9.2 million. As a result, the price of CKC stock decreased 49% upon hearing of the net loss.
Plaintiff seeks to recover damages on behalf of all purchasers or acquirers of CKC securities during the Class Period. Plaintiff is represented in this class action by the law firm of Bull & Lifshitz, LLP. Bull & Lifshitz, LLP has extensive experience in litigating investor class actions. For more information regarding Bull & Lifshitz, LLP, please view our website at www.nyclasslaw.com.
For an information package (www.nyclasslaw.com/infopackage.html) or if you wish to discuss this action, or have any questions concerning this notice of your rights or interests with respect to this matter, please contact Peter D. Bull, Esq. or Joshua M. Lifshitz, Esq., Bull & Lifshitz, LLP via telephone at (212) 213-6222, via fax at (212) 213-9405 or by email at counsel@nyclasslaw.com
Peter D. Bull, Esq., Joshua M. Lifshitz, Esq., 18 East 41st Street New York, NY 10017 (212) 213-6222
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca