NEW YORK, Sept. 25, 2002 (PRIMEZONE) -- Wolf Popper LLP has filed a securities fraud class action complaint against Fleming Companies, Inc. (NYSE:FLM) and two of its senior officers on behalf of purchasers of Fleming common stock from February 13, 2002 through September 3, 2002 inclusive. A copy of the complaint is available from the U.S. District Court for the Eastern District of Texas -- Texarkana Division, and on Wolf Popper's website (www.wolfpopper.com).
The plaintiff alleges in this class action that during the Class Period (February 13, 2002 through September 3, 2002, inclusive) defendants materially misrepresented Fleming's financial results for 2001 and 2002 by failing to record properly the amounts owed to its suppliers. Defendants effected this scheme by taking large unwarranted deductions from payments made on invoices from vendors. The plaintiff further alleges in this action that during the Class Period, defendants materially misrepresented that its retail grocery segment was successful and operating according to plan. The facts began to be revealed on July 30, 2002, when Fleming issued a press release announcing that it was evaluating its strategic alternatives related to its price-impact retail stores. More facts about defendants' misconduct was revealed on September 4 and 5, 2002, when it was reported that Fleming was squeezing its suppliers by making large unwarranted deductions from payments on invoices from the suppliers.
The plaintiff alleges that defendants engaged in this scheme in order to facilitate two securities offerings in June 2002: (1) an offering of 9.2 million shares of Fleming common stock, which netted the Company approximately $170 million, and (2) an offering of $200 million in 9.25 percent senior notes due 2010.
During the Class Period, shares of Fleming common stock closed at as high as $22.95 per share. When the truth about Fleming's retail grocery operations was revealed on July 31, 2002, the Company's common stock fell to $10.81 per share within a few days. On September 5, 2002, after it was reported that Fleming had taken large unwarranted deductions from payments on invoices from its suppliers, Fleming common stock closed at $6.92 per share. Fleming common stock is currently trading in the $4 range.
Any member of the class who desires to be appointed lead plaintiff in the class action must file a motion with the Court no later than October 28, 2002. Class members must meet certain legal requirements to serve as a lead plaintiff. If you have questions or information regarding this action, or if you are interested in serving as a lead plaintiff in this action, you may call or write:
Wolf Popper LLP Robert C. Finkel, Esq. 845 Third Avenue, New York, NY 10022-6689 Tel.: 212. 451.9620/Toll Free: 877.370.7703 Fax: 212.486.2093/Toll Free: 877.370.7704 Email: irrep@wolfpopper.com website: www.wolfpopper.com
More information on this and other class actions can be found at the Class Action Newsline at www.primezone.com/ca