MINNEAPOLIS, March 18, 2003 (PRIMEZONE) -- Investors have sued Nash Finch Company ("Nash Finch" or the "Company) (Nasdaq:NAFCE) (formerly NAFC), accusing the Company of misleading investors about its true financial condition, Berman DeValerio Pease Tabacco Burt & Pucillo said.
The lawsuit seeking class action status was filed March 17, 2003 in the U.S. District Court for the District of Minnesota. Plaintiffs seek damages for violations of federal securities laws on behalf of all investors who bought Nash Finch common stock from February 23, 2000 through and including February 4, 2003 (the Class Period).
Berman DeValerio has represented investors in class actions for over 20 years. To review the complaint and learn more about becoming a lead plaintiff, please visit the firm's website at www.bermanesq.com.
The complaint alleges that Nash Finch, a food retailer and distributor, failed to disclose to investors that the strong financial results it reported throughout the Class Period were inflated by improper accounting practices.
Details of Nash Finch's problems emerged in a series of public statements beginning with a November 8, 2002 regulatory filing in which the Company said it would delay its third quarter 2002 earnings release.
In that same filing, the Company said the Securities and Exchange Commission ("SEC") had initiated an informal inquiry into "practices and procedures relating to certain promotional allowances provided to the Company by vendors that reduce the cost of goods sold."
The complaint states that on November 11, 2002, Bloomberg News reported that Nash Finch's former chief financial officer had sued the Company in June 2000, alleging that he had been fired for declining to take actions that would have overstated earnings.
The negative disclosures culminated on February 4, 2003, the complaint alleges, when the Nash Finch announced that Deloitte & Touche LLP ("Deloitte") had resigned only six months after its retention as independent auditor. According to the complaint, Nash Finch said Deloitte had uncovered information that could "materially impact" previously issued and upcoming financial statements. In that same statement, the Company revealed that the SEC had elevated its probe of Nash Finch to a formal investigation, the complaint alleges.
The Company's stock, which had closed at $12.03 per share on November 8, 2002 and fallen to a close of $8.18 per share on November 11, dropped to $4.30 per share at the close of trading on February 5, 2003.
If you purchased Nash Finch securities during the period February 23, 2000 through and including February 4, 2003, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Michael J. Pucillo, Esq. Jay W. Eng, Esq. Northbridge Centre, Suite 1701 515 North Flagler Drive West Palm Beach, FL 33401 (561) 835-9400 law@bermanesq.com
If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than May 19, 2003. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. You may also retain counsel of your choice. To be a member of the class, however, you need not take any action at this time.
Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations, and consumer fraud. The firm consists of 33 attorneys in Boston, San Francisco, and West Palm Beach, Florida.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca