NEW YORK, Oct. 29, 2003 (PRIMEZONE) -- The deadline for purchasers of Constar International, Inc. ("Constar" or the "Company") (Nasdaq:CNST) stock to move for lead plaintiff in a securities fraud class action recently brought against the Company is rapidly approaching. If you purchased Constar stock issued in connection with or traceable to its November 2002 Initial Public Offering ("IPO") (the "Class") and you wish to be a lead plaintiff in the case, you must move to serve as lead plaintiff by filing a motion in the United States District Court for the Central District of California by November 4, 2003. A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.cauleygeller.com/show_case.asp?ccode=162&pcode=10&pp=4.
The complaint, filed by a client of Cauley Geller Bowman & Rudman, LLP, 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: (a) The Company was then experiencing an unseasonably low demand in its carbonated soft drink bottle business; (b) The Company was then experiencing an adverse impact in the Company's revenue stream due to the "pass-through" of lower resin costs; (c) The Company was then experiencing an adverse trend in the Company's conventional PET container shipments; (d) The Company's management had changed its focus just prior to the IPO and purposely reduced its higher volume preforms, causing a Q4 revenue shortfall; and (e) 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.
If you bought Constar stock in connection with or traceable to its November 2002 IPO (the "Class"), and you wish to serve as lead plaintiff, you must move the Court no later than November 4, 2003. If you are a member of this class, you can join this class action online at http://www.cauleygeller.com/template8.asp?pcode=6&pp=1. Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller is a national law firm that represents investors and consumers in class action and corporate governance litigation. It is one of the country's premiere firms in the area of securities fraud, with in-house finance and forensic accounting specialists and extensive trial experience. Since its founding, Cauley Geller has recovered in excess of two billion dollars on behalf of aggrieved shareholders. The firm maintains offices in Boca Raton, Little Rock and New York.
If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.cauleygeller.com.