AND NOBODY DOESNT LIKE SARA LEE!!->Cauley Geller Announces Class Action Lawsuit Against Sara Lee Corporation On Behalf of Investors
NEW YORK, May 13 /PRNewswire/ -- The Law Firm of Cauley Geller Bowman Coates & Rudman, LLP announced today that a class action lawsuit has been filed in the United States District Court for the Northern District of Illinois on behalf of purchasers of Sara Lee Corporation (NYSE:SLE) ("Sara Lee" or the "Company") publicly traded securities during the period between August 1, 2002 to April 24, 2003, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at cauleygeller.com .
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between August 1, 2002 and April 24, 2003, thereby artificially inflating the price of Sara Lee securities. The Complaint alleges that defendants issued a series of materially false and misleading statements concerning the Company's operations and prospects. In particular, the Complaint alleges that the statements were materially false and misleading because they failed to disclose: (a) that, despite the Company Reshaping program, the Company was still burdened with numerous poorly performing businesses and would have to reevaluate its various businesses. Accordingly, Sara Lee did not have "the right mix of businesses" in that several material businesses were "not growing" or were "in significant decline"; (b) that the Company's underperforming businesses were causing the Company to experience declining results and, as a result, the Company would not be growing at the rates represented to the market; (c) due to a lack of proper internal or financial controls, Sara Lee failed to identify or recognize those businesses or brands among its portfolio of companies that would need to be "run dramatically differently in the future"; and (d) based on the foregoing, Sara Lee lacked any reasonable basis upon which to project it (i) would experience "double-digit operating income increase" for fiscal 2003 among its "five lines of business" or (ii) have diluted EPS for fiscal 2003 in the range of $1.54 to $1.60.
On April 24, 2003, Sara Lee shocked the public when it issued a press release announcing its financial results for the third quarter, the period ending March 31, 2003. The Company announced that it was reducing earnings for fiscal 2003 to $1.50 to $1.52 per share, significantly below consensus expectations of $1.59. In response to this announcement, the price of Sara Lee common stock dropped by 10%. During the Class Period, Sara Lee insiders sold more than $23 million of their personally-held Sara Lee common stock to the unsuspecting public.
If you bought Sara Lee publicly traded securities between August 1, 2002 to April 24, 2003, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than July 14, 2003. If you are a member of this class, you can join this class action online at cauleygeller.com . Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller is a national law firm that represents investors and consumers in class action and corporate governance litigation. It is one of the country's premiere firms in the area of securities fraud, with in-house finance and forensic accounting specialists and extensive trial experience. Since its founding, Cauley Geller has recovered in excess of two billion dollars on behalf of aggrieved shareholders. The firm maintains offices in Boca Raton, Little Rock and New York.
If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.cauleygeller.com .
Contact:
CAULEY GELLER BOWMAN COATES & RUDMAN, LLP
Samuel H. Rudman, Esq. or David A. Rosenfeld, Esq.
Client Relations Department:
Jackie Addison, Heather Gann or Sue Null
P.O. Box 25438
Little Rock, AR 72221-5438
Toll Free: 1-888-551-9944
Fax: 1-501-312-8505
E-mail: info@cauleygeller.com
SOURCE Cauley Geller Bowman Coates & Rudman, LLP
CO: Cauley Geller Bowman Coates & Rudman, LLP; Sara Lee Corporation
ST: New York, Arkansas, Illinois
SU: LAW
prnewswire.com
05/13/2003 19:04 EDT |
