HARTFORD, Conn., Jan. 25, 2008 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that it is investigating possible securities violations by SunOpta Inc. ("SunOpta" or the "Company") (Nasdaq:STKL). The investigation concerns today's announcement by SunOpta Inc. that earnings for 2007 have been impacted by material issues in the Company's fruit and bioprocess groups which have led to significant write downs and provisions in the range of $12 to $14 million pre-tax.
In addition, the Company is currently analyzing the impact of adjustments related to the SunOpta berry operations, including the potential impact on previously issued fiscal 2007 financial statements which will likely result in the restatement of previous quarters' financial statements. In that regard, the Company has determined that inventories within the SunOpta berry operations require a write-down to net realizable value, and that preliminary estimates indicate that the Company will take a charge in the range of $9 to $11 million relating to this issue and related items. The Company announced that it is now assessing its internal controls and processes, and is implementing of a series of specific pricing and cost related actions to address potential causes of this issue. The Company's testing and analysis is ongoing and there can be no assurance that further adjustments will not be required.
As a result of the disclosure of this adverse news, which was completely unexpected, the market price of SunOpta shares declined over 34 percent on volume of over 6 million shares, wiping out millions of dollars of shareholder value.
If you purchased SunOpta securities between January 1, 2007 and January 24, 2008, or would like more information about this investigation, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.