JENKINTOWN, Pa., Oct. 6, 2004 (PRIMEZONE) -- On September 24, 2004, a Securities Class Action was filed against Stonepath Group, Inc. (AMEX:STG), Dennis L. Pelino, Bohn H. Crain and Thomas L. Scully. The lawsuit, pending in the United States District Court for the Eastern District of Pennsylvania, was filed on behalf of purchasers of Stonepath securities during the period between May 7, 2003 and September 20, 2004 (the "Class Period").
The complaint charges that Stonepath and certain of its officers and directors violated the Securities Exchange Act of 1934. Specifically, the Complaint alleges that Stonepath failed to disclose and misrepresented that it understated the Company's expenses and liabilities, and overstated the Company's net income and earnings before income, taxes, depreciation, and amortization ("EBITDA"), resulting in materially false and misleading Class Period financial statements by the Company. Due to the above, Stonepath's reported financial results violated GAAP.
On September 20, 2004, the Company reported that it planned to restate its fiscal year 2003, and first and second quarter of 2004 financial statements. As a result of this announcement, the price of Stonepath stock dropped 46% from the previous day, closing at $0.86 per share on heavy trading volume of 4,830,200 shares.
If you bought or acquired the securities of Stonepath, Inc. between May 7, 2003 and September 20, 2004 and sustained damages, you may, no later than November 23, 2004, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative that acts on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must determine that the class member's claim is typical of those 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 whether or not you serve as a lead plaintiff. You may retain Mager White & Goldstein, LLP, or other counsel, to represent you in this action.
Mager White & Goldstein has offices in Pennsylvania and Florida. The firm's attorneys have been litigating complex commercial matters for over twenty years. The firm concentrates its practice in the areas of complex commercial litigation with emphasis on securities, antitrust, consumer protection, employment, civil rights and ERISA individual and class actions, as well as labor and employment advice, Lanham Act, trade disparagement, and other types of business tort litigation. Please visit the Mager White & Goldstein website (http://www.mwglawfirm.com) for more information about the firm.
If you wish to discuss the lawsuit against Stonepath with us, or if you have any questions about this notice or your rights and interests with regard to this case, please contact the following attorney:
Jayne A. Goldstein One Pitcairn Place, Suite 2400 165 Township Line Road Jenkintown, PA 19046 866-274-8258 Toll Free Email: jgoldstein@mwg-law.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca