LITTLE ROCK, Ark., Sept. 11, 2002 (PRIMEZONE) -- The deadline for purchasers of Fleming Companies, Inc. ("Fleming" or the "Company") (NYSE:FLM) publicly traded securities to move for lead plaintiff in a securities fraud class action recently brought against the Company is rapidly approaching. If you purchased Fleming securities between February 27, 2002 and July 30, 2002, inclusive (the "Class Period"), and you wish to be a lead plaintiff in the case, you must move to serve as lead plaintiff by filing a motion in the United States District Court for the Eastern District of Texas by October 28, 2002. A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.cauleygeller.com/pr/fleming.pdf.
The action, numbered 502-CV-178, is pending in the United States District Court for the Eastern District of Texas, Texarkana Division, against defendants Fleming, Mark Hansen (CEO, Chairman), Neal J. Rider (CFO) and Thomas G. Dahlen (Executive FP, President of retail operations).
The complaint alleges violations of the Federal Securities Laws, specifically Sections 10(b) and 20(a), of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The suit alleges that beginning in early 2002, the defendants issued numerous positive statements regarding Fleming's "price-impact" retail supermarket division. Defendants knew, or recklessly disregarded, that the "price-impact" stores were not living up to defendants' expectations, yet the statements were released to the investing public nonetheless. The effect of these statements was to falsely portray Fleming's business prospects and to artificially inflate and maintain the price of Fleming common stock. Further, the defendants used the artificially high stock price to: 1) lower the interest rate and extend the maturity on $250 million of Fleming's debt; 2) raise over $155 million through the June 13, 2002 sale of 8 million shares of Fleming common stock at $19.40 per share; 3) raise an additional $200 million through the June 13, 2002 sale of Fleming Notes due 2010; and 4) to use the proceeds of the June 13, 2002 securities sales to complete the purchase of Core-Mark International, Inc. and Head Distributing for $330 million in cash - acquisitions described by the defendants as "key" to Fleming's implementation of its strategic transformation into an efficient, national, multi-tier supply chain for consumer packaged goods.
Then, after only approximately six weeks after defendants sold $355 million worth of Fleming securities, Fleming startled the market by announcing after the close of trading on July 30, 2002 that its "price-impact" retail supermarket division was not only performing poorly, but performing so poorly that Fleming was considering abandoning this line of business entirely. The price of Fleming common stock dramatically declined on this announcement, falling from $15.21 on July 30, 2002 to $13.75 on July 31, 2002, on huge trading volume of 3.9 million shares, and continued to decline over the next two heavy trading days to a 52-week low of $10.76 on August 2, 2002. Since then, the price of Fleming common stock has never recovered, and currently trades well below the $19.40 price at which Fleming sold 8 million shares to unsuspecting investors on June 13, 2002.
If you bought Fleming common stock between February 27, 2002 and July 30, 2002, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than October 28, 2002. If you are a member of this class, you can join this class action online at http://www.cauleygeller.com/sign_up.html. Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.cauleygeller.com.
CAULEY GELLER BOWMAN & COATES, LLP Investor Relations Department: Jackie Addison, Sue Null or Ellie Baker P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@cauleygeller.com Media Contact: Randall K. Pulliam or Shelly Nicholson 1-501-312-8500
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.