PHILADELPHIA, April 25, 2003 (PRIMEZONE) -- The law firm of Spector, Roseman & Kodroff, P.C. announces that a securities class action lawsuit was commenced in the United States District Court for the Southern District of New York, on behalf of purchasers of the common stock of Imperial Chemical Industries PLC ("Imperial Chemical" or the "Company") (NYSE:ICI) between August 1, 2002 through March 24, 2003, inclusive (the "Class Period").
The Complaint alleges that defendants violated the federal securities laws by issuing materially false and misleading statements contained in press releases and filings with the Securities and Exchange Commission during the Class Period. Specifically, the Complaint alleges that defendants issued numerous press releases in which they stated that they had resolved the Company's distribution and software problems that the Company had experienced at its Quest division's Fragrance & Food businesses. Defendants further stated that the Company was on track to report strong financial results, that the Company had cleared its backlog of customer orders and that the Company had not lost any customers as a result of its production problems.
The Complaint alleges that these statements were materially false and misleading because they failed to disclose among others: (a) that ICI's software, distribution and production problems at its Quest division were not "temporary" problems or "unique" to the Naarden, The Netherlands location, but impacted company-wide operations and profitability; (b) that ICI's software, distribution and production problems at its Quest division had not been "essentially" or "largely" "resolved" or "rectified;" and (c) that contrary to ICI's representations that it had cleared its backlog of orders and not lost any customers as a result of the software, distribution and production problems at Quest, ICI's customers were, in fact, obtaining new sources of supply and discontinuing their relationships with ICI.
On March 25, 2003, before the open of trading, ICI issued a profit warning with respect to its fiscal 2003 first quarter. The Company announced that its first quarter profit would drop approximately 24%, as a result of, among other things, "business lost following the customer service problems in 2002." Following this announcement, shares of ICI fell from a close of $9.60 per share on March 24, 2003 to a close of $5.60 per share on March 25, 2003, or a single-day decline of more than 36%, on nearly twenty times normal trading volume.
If you purchased Imperial Chemical securities during the Class Period, you may, no later than June 9, 2003, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in Imperial Chemical securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action, please visit http://www.srk-law.com/dbjoinaclassaction.asp. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via e-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca