PHILADELPHIA, Sept. 27, 2004 (PRIMEZONE) -- Law Offices Bernard M. Gross, P.C. (http://www.bernardmgross.com) announces that a class action lawsuit, numbered 04cv 0515, was commenced in the United States District Court for the Eastern District of Pennsylvania, against defendants Stonepath Group, Inc., Dennis L. Pelino, Chairman of the Board of Directors and Chief Executive of the Company, Bohn L. Crain, Chief Financial Officer, and Thomas L. Scully, Principal Accounting Officer of the Company, on behalf of all persons who purchased Stonepath securities (AMEX:STG), between May 7, 2003 and September 20, 2004 seeking remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). The case has been assigned to Judge Stewart Dalzell.
The complaint charges Stonepath and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Stonepath describes itself as a non-asset based third-party logistics services company providing supply chain solutions on a global basis. It offers a full range of time-definite transportation and distribution solutions through (its) Domestic Services platform which manages and arranges the movement of raw materials, supplies, components and finished goods for our customers. The Complaint alleges that the Company failed to disclose and misrepresented that it had understated its accrued purchased transportation liability and related costs of purchased transportation rendering the Company's financial statements materially false and misleading because they understated the Company's liabilities and expenses, and overstated the Company's net income and earning before income, taxes, depreciation, and amortization ("EBITDA"). As a result of the above, the Company's reported financial results were in violation of GAAP.
On September 20, 2004, the Company announced its intention to restate its fiscal year 2003 and first and second quarter 2004 financial statements. As a result of this news, the price of Stonepath stock dropped 46% from September 19, 2004, and closed at $0.86 per share on heavy trading volume.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Deborah R. Gross or Susan R. Gross of Law Offices Bernard M. Gross at 866-561-3600(toll-free) or via e-mail at susang@bernardmgross.com. If you are a member of this class, you can view a copy of the complaint as filed at http://www.bernardmgross.com. 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 purchased or otherwise acquired the securities of Stonepath Group, Inc. between May 7,2003 and September 20, 2004, and sustained damages, you may, no later than November 23, 2004, file a motion to be appointed lead plaintiff, if you so choose. Law Offices Bernard M. Gross, P.C. has significant experience and expertise in prosecuting class actions.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca