NEW YORK, Aug. 26, 2004 (PRIMEZONE) -- Wechsler Harwood LLP today announced that it has filed a Federal Securities fraud class action suit on behalf of all securities purchasers of CP Ships Limited (NYSE:TEU) ("CP Ships" or the "Company") from January 29, 2003 through August 9, 2004, both dates inclusive (the "Class Period").
The action, entitled Hood v. CP Ships Limited., et al., Case No. (not yet assigned), is pending in the United States District Court for the Middle District of Florida and names as defendants, the Company, its Chief Executive Officer, President, and a member of the Board of Directors, Ray Miles, its Chief Operating Officer, Frank Halliwell, and its Chief Financial Officer, Ian Webber. A copy of the complaint can be obtained from the Court or can be viewed on Wechsler Harwood web site at: www.whesq.com.
CP Ships is a container shipping company offering its customers door-to-door, as well as port-to-port containerized services for the international transportation of a range of industrial and consumer goods, including raw materials, semi- manufactured and finished goods. The complaint charges defendants with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company overstated its net income figures by $22 million to $27 million; (2) that the Company insufficiently accrued certain costs which caused the Company's net income figures to be materially inflated; (3) that the Company's financial results were in violation of Generally Accepted Accounting Principles ("GAAP") and the Company's own accounting interpretations; and (4) that as a result of the above, the Company's financial results were materially inflated at all relevant times.
On August 9, 2004, CP Ships announced that in conjunction with the release of second quarter 2004 results it would restate previously reported financial results, the Company insufficiently accrued certain costs which caused the Company's net income figures to be materially inflated. News of this shocked the market. Shares of CP Ships fell $3.70 per share or 22.36 percent, on August 9, 2004, to close at $12.85 per share.
If you are a member of the class described above, you may, not later than October 12, 2004, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. 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 serve as a lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400
Virgilio Soler, Wechsler Harwood Shareholder Relations Department: vsoler@whesq.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca