ATLANTA, May 12, 2003 (PRIMEZONE) -- Chitwood & Harley LLP announces that a class action lawsuit is pending in the United States District Court for the Central District of California, against Avery Dennison Corporation ("Avery" or the "Company") (NYSE:AVY), and certain of its officers and directors. The suit was filed on behalf of purchasers of the securities of Avery Dennison between July 24, 2001 and April14, 2003, inclusive ("Class Period"). A complaint is available from the Court or can be emailed upon request.
If you would like to discuss this action or have any questions concerning this notice or your rights with respect to this matter, please contact Jennifer Morris by email at jlm@classlaw.com , through our website, www.classlaw.com or by calling 1-888-873-3999..
The complaint charges Avery and certain of its officers and directors with violations of the Securities Exchange Act of 1934 (the "Exchange Act"). More specifically, the complaint alleges that Avery failed to disclose that its financial results during the Class Period were a product of a tacit and illegal anti-competitive scheme with its leading competitor, UPM-Kymmene, OYJ ("UPM"), whereby the Company and UPM manipulated the labelstock supply market.
The complaint further alleges that during the Class Period, defendants issued false and misleading statements to the marketplace that artificially inflated the price of Avery's shares. The statements disseminated by the defendants during the Class Period failed to disclose and indicate (1) that Avery was engaged in an illegal anti-competitive scheme with UPM to drive a more stable price environment within the labelstock industry; (2) that the Company's financial results were a product of its anti-competitive behavior; (3) that the Company knew that its anti-competitive behavior could possibly subject the Company to regulatory scrutiny in the future if such anti-competitive behavior was discovered; and (4) that its financial results would be materially impacted if the Company were forced to stop its anti-competitive behavior.
On April 14, 2003, the United States Department of Justice ("DOJ") issued a press release wherein it announced that it intended to file a civil antitrust lawsuit in the United States District Court for the Northern District of Illinois in Chicago to block UPM from acquiring Morgan Adhesives Company ("MACtac"). Among the reasons given for filing the suit, the DOJ stated that its investigation had revealed that the merger between UPM and MACtac was one in which Avery and UPM sought to coordinate. Additionally, on April 14, 2003, Avery announced that the DOJ had started a criminal investigation into competitive prices in the labelstock industry and would shortly issue a subpoena to the Company in connection with that investigation. On April 15, 2003, the DOJ filed its complaint against UPM. Therein, the DOJ alleged that UPM and Avery were in "positions of marketplace dominance and had significant incentives to engage in explicit competitive coordination." The DOJ also alleged that evidence of competitive coordination was enhanced by a "longstanding strategic paper supply relationship" between UPM and Avery. The DOJ further alleged that "the supply relationship provided UPM and Avery with the motivations, opportunities, and means to coordinate on price, monitor adherence, punish cheating, and engage in side payments that could be hidden in label paper transactions." The market reacted swiftly to this news, pushing the price of Avery stock down $4.19 to close at $55.94 on extremely high trading volume.
Chitwood & Harley LLP is currently investigating these claims. If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact Lauren Antonino, Esq. or Jennifer Morris at 1-888-873-3999 ext. 6883 (toll-free) or by e-mail at jlm@classlaw.com. You may also contact us through our website, www.classlaw.com by clicking on Avery Dennison Corporation. If you would like to serve as lead plaintiff, you must meet certain requirements that we would be happy to discuss with you. The deadline for filing papers is July 7, 2003. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of his or her choice, or may remain an absent class member. A complaint is available from the court or can be emailed to you upon request.
Chitwood & Harley LLP is a class action firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States and has been instrumental in recovering billions of dollars on behalf of its clients. Clients and courts alike have praised the results achieved by Chitwood & Harley. Recently, the federal judge in In re BankAmerica Securities Litigation, which resulted in the highest recovery last year in a securities class action, commented favorably on counsel's performance stating: "Class members were well served by experienced attorneys who, through considerable time and effort, obtained a significant recovery for their clients," and, "(a)s the Court has remarked throughout this litigation, class counsel ... have performed at exceptionally high levels, and all parties have been exceedingly well represented."
For more information about Chitwood & Harley LLP, please visit our website at www.classlaw.com or contact Jennifer Morris at 1-888-873-3999 (toll-free) ext. 6883, by e-mail at jlm@classlaw.com or at 1230 Peachtree Street, Suite 2300, Atlanta, Georgia 30309.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca