NEW YORK, Sept. 17, 2004 (PRIMEZONE) -- Murray, Frank & Sailer LLP announces that a class action has been commenced on behalf of purchasers of Allied Waste Industries Inc. securities ("Allied Waste") (NYSE:AW) during the period between February 10, 2004 and July 27, 2004 (the "Class Period").
The Complaint charges Allied Waste and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims that defendants' omissions and material misrepresentations concerning Allied Waste's operations and prospects artificially inflated the Company's stock price, inflicting damages on investors. Allied Waste provides collection, transfer, recycling and disposal services for non-hazardous solid waste. The Complaint alleges defendants knew or recklessly disregarded material adverse facts including: (1) the Company's internal growth, which defendants touted as strong, actually was lagging due to poor management execution and the loss of a large contract; (2) defendants had failed to successfully implement the Company's "best practices" initiatives because the Company lacked adequate internal controls; (3) defendants knew or recklessly disregarded that the much-anticipated cyclical volume pickup of trash was not materializing; and (4) as a result of the above, defendants' statements about the Company were lacking in any reasonable basis when made.
On July 27, 2004, Allied Waste posted earnings below analysts' expectations, and a net loss of 7 cents per share. This news caused Allied Waste shares to plummet $2.55 per share, or 20.83 percent, on unusually high trading volume, to close at $9.69 per share on July 28, 2004. This was Allied Waste's biggest drop in five years.
If you purchased or acquired the common stock of Allied Waste between February 10, 2004 and July 27, 2004, inclusive, and sustained damages, you may, no later than October 8, 2004, move the Court to serve as lead plaintiff of the class. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.