NEW YORK, Feb. 26, 2003 (PRIMEZONE) -- The law firm of Wechsler Harwood LLP (www.whesq.com) has been retained for and intends to file a 401(k) breach of fiduciary duty class action complaint (the "complaint") against Royal Ahold N.V. ("Ahold") (NYSE:AHO) and the administrators of certain plans in the United States District Court for the Eastern District of Virginia in Alexandria, Virginia on behalf of participants and beneficiaries of Ahold-sponsored 401(k) retirement plans ("Plans") for the benefit of employees of its U.S. subsidiaries, including Stop & Shop, Giant-Landover, Giant-Carlisle, Topps, BI-LO, Bruno's and Peapod. The lawsuit will cover participants and beneficiaries from March 6, 2001 through February 21, 2003 of Ahold-sponsored retirement plans.
The complaint will allege that Ahold and its Plan administrators breached their fiduciary duties of loyalty and prudence when they concealed or withheld material information from the Plan participants and beneficiaries with respect to the company's business, financial results and operations, thereby encouraging participants to continue to make and maintain substantial investments in Ahold stock in the Plans.
On February 24, 2003, Ahold stunned the market when it disclosed that operating earnings for fiscal year 2001 and expected operating earnings for fiscal year 2002 were overstated by an amount Ahold believes may exceed $500 million. The overstatements of income discovered to date will require the restatement of Ahold's financial statements for fiscal year 2001 and the first three quarters of fiscal year 2002. As disclosed by Ahold, and as will be alleged in the Complaint, during the 2002 fiscal year-end audit for Ahold's U.S. Foodservice subsidiary, significant accounting irregularities were discovered in the recognition of income, including prepayment amounts related to U.S. Foodservice's promotional allowance programs. As a result of the disclosure, Ahold President and Chief Executive Officer, Cees van der Hoeven, and Chief Financial Officer, Michiel Meurs, were ousted.
In response to the disclosure of Ahold's true financial condition, its stock and ADRs plummeted in a one day loss of over 65%.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the action, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 x-283 Ramon Pinon, Wechsler Harwood Shareholder Relations Department: rpinon@whesq.com