HARTFORD, Conn., Sept. 27, 2005 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Northern District of Georgia on behalf of all persons who purchased the publicly traded securities of Spectrum Brands, Inc. (NYSE:SPC) ("Spectrum Brands") between January 4, 2005 and September 6, 2005 (the "Class Period").
The Complaint alleges that Spectrum Brands violated federal securities laws by issuing false or misleading public statements. Specifically, the Complaint alleges that Spectrum Brands made certain positive statements about its business and predicted favorable financial results which, given the downturn in its core battery business, were false or misleading when such statements were made. On July 28, 2005, Spectrum Brands reported disappointing financial results for 3Q05 and revealed that, as a result of a material decline in its core battery products, it could not meet its guidance for either fiscal 2005 or 2006. On September 7, 2005, Spectrum Brands revealed that earnings for the fourth quarter ending September 30, 2005 would be "substantially lower," attributing the shortfall to weak sales and "high (retail) inventory levels." On this news, Spectrum Brands stock closed at $25.25 per share on September 7, 2005, down from a close of $29.12 per share on September 6, 2005 and a close of $38.37 per share on July 27, 2005.
If you are a member of the class, you may, no later than November 28, 2005, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.