Bala Cynwyd, Pa., Sept. 6, 2003 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all purchasers of Constar International, Inc. (Nasdaq: CNST) ("Constar" or the "Company") stock issued in connection with or traceable to its November 2002 Initial Public Offering ("IPO").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com. Schiffrin & Barroway, LLP is located at Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004
The complaint charges Constar and certain of its officers and directors with violations of the Securities Act of 1933. Constar is a wholly owned subsidiary of Crown Cork & Seal Co. ("Crown"). Crown is a leading supplier of packaging products to consumer marketing companies around the world. In November 2002, Constar completed an IPO of 10.5 million shares of stock pursuant to a Prospectus/Registration Statement. The IPO, which was solely comprised of shares sold by Crown, was priced at $12 per share for total proceeds of $117 million after underwriting discounts and commissions. The complaint alleges that the Prospectus/Registration Statement was materially false and misleading and failed to disclose, among other things, that (1) the Company was then experiencing an unseasonably low demand in its carbonated soft drink bottle business; (2) the Company was then experiencing an adverse impact in the Company's revenue stream due to the "pass-through" of lower resin costs; (3) the Company was then experiencing an adverse trend in the Company's conventional PET container shipments; (4) the Company's management had changed its focus just prior to the IPO and purposely reduced its higher volume preforms, causing a fourth quarter revenue shortfall; and (5) the Company's goodwill was impaired, and defendants failed to timely take an impairment charge.
As this adverse information was disclosed, the Company's shares eventually plummeted to $5.00 per share. Public investors who purchased shares traceable to the IPO based on Constar's representations, paying $12 per share for Constar stock, have suffered tens of millions of dollars in damages.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/currentcases.cfm.
If you are a member of the class described above, you may, not later than November 4, 2003, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca