CHICAGO, June 14, 2002 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that class action lawsuits are pending in the United States District Court for the Western District of Wisconsin on behalf of purchasers of the securities of Rayovac Corporation ("Rayovac" or the "Company") (NYSE:ROV) between April 26, 2001 and September 19, 2001, inclusive ("Class Period").
It has been alleged that Rayovac, Kenneth V. Biller, Kent J. Hussey, David A. Jones, Scott A. Schoen, Stephen P. Shanesy, Thomas R. Shepard, Randall J. Steward, Warren C. Smith, Jr. and Merrell M. Tomlin violated Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder by issuing materially false and misleading statements, including a materially false and misleading Registration Statement and Prospectus (the "Prospectus") issued in connection with its Secondary Offering of shares to the public, regarding the demand for the Company's products and the Company's future prospects.
According to the allegations, these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others:
(a) that the Company was experiencing declining demand for its products and in order to stimulate demand and create the impression that the Company was performing according to analyst expectations, Rayovac was extending generous credit terms to customers in order to induce them to purchase additional products, thereby pulling sales in from the future. Consequently, Rayovac created the appearance of earnings growth, when defendants knew, or recklessly disregarded that future sales would be negatively impacted by the aforementioned practices;
(b) that the Company's expansion in Latin America was the result of aggressive sales practices whereby the Company extended generous payment terms and induced customers to take additional unneeded inventory; and
(c) based on the foregoing, defendants lacked a reasonable basis for their statements that the Company would grow by 8-9% in the third and fourth quarter of 2001.
On September 20, 2001, before the market opened for trading, Rayovac issued a press release announcing that the Company's fiscal fourth quarter results would be negatively impacted by a purported slowdown in battery sales in its U.S. and Latin American markets. As a result, contrary to defendants' bullish Class Period statements, Rayovac's earnings for the quarter would be flat to down slightly from the same period for the previous year.
The market's reaction to this announcement was immediate and punitive, with shares of Rayovac common stock falling more than 23% to a Class Period low of $12.74 per share on almost eight times the normal trading volume.
Much Shelist is currently investigating these claims. If you wish to discuss your rights and interests, or if you have information relevant to the lawsuit, you may contact Carol V. Gilden or Michael E. Moskovitz at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to Rayovac.
If you purchased Rayovac securities during the Class Period and if you meet certain other legal requirements, you may file a motion in the court where the lawsuit has been filed to serve as a lead plaintiff. You must file your motion no later than July 30, 2002.
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. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca