ATLANTA, June 10, 2003 (PRIMEZONE) -- Chitwood & Harley announces that it has filed a class action lawsuit in the United States District Court for the Northern District of Texas, Dallas Division, on behalf of all purchasers of securities of Daisytek International Corp. ("Daisytek" or the "Company") (Nasdaq:DZTK) between November 9, 2001 and April 28, 2003, inclusive (the "Class Period"). The suit is brought against certain of the company's officers and directors. A copy of the complaint is available on our website, www.classlaw.com, by clicking on Daisytek.
Plaintiff alleges violations of the federal securities laws stemming from defendants' issuance of false and misleading statements about Daisytek's business, operating performance and prospects. In particular, defendants were improperly accounting for uncollectible customer accounts receivables and vendor rebates receivables in order to increase Daisytek's financial results.
The complaint alleges that defendants obtained vital financing to the Company, pursuant to Daisytek's favorable results which were reported to the investing public. The Company consequently divulged it would record "significant" write-downs of customer and vendor receivables and inventory and large restructuring changes. Following this news, the Company's stock decreased to $0.53. The Company consequently announced the resignations of its CEO and its CFO.
The deadline to file lead plaintiff papers, for those class members wishing to serve in this capacity, is July 29, 2003. There are certain legal requirements to serve as lead plaintiff, which we would be happy to discuss with you. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact Lauren Antonino or Jennifer Morris at 1-888-873-3999 (toll-free) or by e-mail at jlm@classlaw.com. You may also contact us through our website, www.classlaw.com, by clicking on Daisytek.
Chitwood & Harley LLP is a class action firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States and has been instrumental in recovering billions of dollars on behalf of its clients. Clients and courts alike have praised the results achieved by Chitwood & Harley. Recently, the federal judge in In re BankAmerica Securities Litigation, which resulted in the highest recovery last year in a securities class action, commented favorably on counsel's performance stating: "Class members were well served by experienced attorneys who, through considerable time and effort, obtained a significant recovery for their clients," and, "(a)s the Court has remarked throughout this litigation, class counsel ... have performed at exceptionally high levels, and all parties have been exceedingly well represented."
For more information about Chitwood & Harley, please visit our website at www.classlaw.com or contact Jennifer Morris at 1-888-873-3999 (toll-free), by e-mail at jlm@classlaw.com or at 1230 Peachtree Street, Suite 2300, Atlanta, Georgia 30309.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca