NEW YORK, Dec. 4, 2003 (PRIMEZONE) -- The law firm of Kirby McInerney & Squire, LLP announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of Georgia, on behalf of all purchasers of Friedman's, Inc. ("Friedman's" or the "Company") (NYSE:FRM) securities during the period from January 26, 2000 through November 11, 2003, inclusive (the "Class Period").
Please visit our website at, http://www.kmslaw.com/new_cases/Friedmans/Friedmans.htm, or contact us by phone at (888) 529-4787 or by email at, emui@kmslaw.com, for more information.
The action charges Friedman's and certain of its senior officers with violations of Sections 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The alleged violations stem from the dissemination of false and misleading statements, which had the effect - during the Class Period - of artificially inflating the price of the Company's shares.
On November 11, 2003, after the market closed, Friedman's announced that it would be increasing its allowance for doubtful accounts. The Company also reported that the SEC was formally investigating the Company's provision for doubtful accounts, accounting practices and internal controls from January 1, 2000 to the present and the allegations of a lawsuit filed by Capital Factors, Inc., charging that it was defrauded by Friedman's, among others. The Company further disclosed that the Department of Justice was also looking into the Company's provision for doubtful accounts. Finally, the Company reported that it placed its CFO, Victor Suglia, on a leave of absence. Friedman's common stock dropped more than 40% on this news.
If you are a member of the class described above, you may, no later than January 13, 2004, move the Court to serve as lead plaintiff of the class, if you so choose, pursuant to the Private Securities Litigation Reform Act of 1995 (the"PSLRA"), 15 U.S.C. section 78u-4(a). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to seek appointment as a lead plaintiff. For more information about the case, its claims, and your rights, see contacts, below.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca