CHICAGO, April 8, 2004 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that a class action lawsuit is pending in the United States District Court for the Northern District of Illinois on behalf of purchasers of the securities of McDonald's Corporation (NYSE:MCD) ("McDonald's" or the "Company") between December 14, 2001 and January 22, 2003, inclusive ("Class Period").
The Complaint alleges that McDonald's, along with certain officers and directors ("Individual Defendants"), violated the federal securities laws by issuing a series of materially false and misleading statements to the market. These misstatements have had the effect of artificially inflating the market price of McDonald's securities.
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 Conor R. Crowley 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 McDonald's.
Specifically, the Complaint charges that the Company misrepresented the state of its business and future prospects by failing to disclose that hundreds of its restaurants were underperforming and that the Company had incurred hundreds of millions of dollars in unrecorded asset impairment and other charges.
Defendants' scheme began to unravel when in September 2002, the Company reported that "comparable sales" (i.e., year-over-year sales comparisons for restaurants that had been open for more than thirteen months) had continued to decline, especially in U.S. and European markets, making it impossible for the Company to meet its 2002 earnings guidance.
Then on January 23, 2003, defendants announced that the Company had incurred losses of more than $810 million related, primarily, to the closure of over 700 underperforming restaurants and the write-off of hundreds of millions of dollars of previously capitalized technology costs.
Prior to the disclosure of the adverse facts described above, the Company completed fixed-rate debt offerings of at least $900 million at highly favorable interest rates. In addition, the Individual Defendants, as well as other McDonald's insiders, sold over 939,000 shares of McDonald's common shares, at or near market highs, generating proceeds of more than $26 million.
If you purchased McDonald's 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 June 4, 2004.
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.