chum is officially in the water.
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Safeskin named in lawsuit - attorneys
Reuters Story - March 12, 1999 19:09
NEW YORK, March 12 (Reuters) - A shareholder lawsuit was filed in federal court against Safeskin Corp., accusing the company of issuing false and misleading financial statements, attorneys for the plaintiffs said Friday.
A company spokesman could not immediately be reached for comment.
Safeskin, the maker of disposable latex and synthetic gloves, on Thursday said it expected first quarter and full year results to be below expectations because of soft sales.
On Friday, at least two analysts cut their ratings on the company.
The lawsuit was filed in U.S. District Court for the Southern District of California on behalf of Safeskin shareholders from Oct. 29, 1998, through March 11, 1999, by the law firm Wolf Popper LLP.
The attorneys said in a statement Safeskin "misled the investing public as to the company's opportunities for fiscal 1999, by 'stuffing the channel,'" or selling to its distributors more product than they wanted or could reasonably sell.
This gave "the false appearance that the company's business was continuing to grow at record levels," the attorneys said. |
