Dawg. This isn't new but did you know about this one?
03/12/99 PRN Fraud Lawsuit Filed on Behalf of Purchasers of StaffMark Inc. Common Stock
March 12, 1999 06:58 PM
LITTLE ROCK, Ark., March 12 /PRNewswire/ -- The Law Offices of Steven E. Cauley, P.A. today announced that a class action has been filed in United States District Court, Eastern District of Arkansas, on behalf of all purchasers of StaffMark Inc. STAF common stock during the period October 8, 1998 through March 2, 1999 (the "Class Period"). The complaint (the "Complaint"), which was filed by attorney Steven E. Cauley, alleges that StaffMark and certain of its officers and directors violated the federal securities laws by issuing false statements about StaffMark's business which caused its stock price to trade at artificially inflated prices.
For example, the Complaint filed by Steven E. Cauley alleges that, on February 24, 1999, all levels of senior management of StaffMark stated that they were "confiden[t] about operations" and that, while December 98 and early January 99 business had been slow, StaffMark's business was ramping up "as fast or faster than expected." However, the Complaint filed by Steven E. Cauley alleges that, just five days later, StaffMark revealed that its revenues from its key Intellimark division had shown 0% growth in January and 4-5% growth in February, both well under budget, and that as a result, StaffMark's earnings for the first quarter of 1999 and Year 1999 would fall dramatically below expectations.
The Complaint filed by Steven E. Cauley further alleges that these disclosures caused StaffMark common stock to collapse in price and that -- just one month prior to these revelations -- StaffMark's largest shareholder sold 250,000 StaffMark shares for $4 million. The Complaint filed by Steven E. Cauley also alleges that, just three months before StaffMark collapsed in price, StaffMark used $140 million worth of its artificially inflated stock as a currency to acquire Robert Walters plc, a European business. At the same time, according to the Complaint filed by Steven E. Cauley, StaffMark's CEO Clete Brewer had stated that StaffMark was "undervalued."
This lawsuit has been filed by lawyers with substantial experience in representing investors in securities fraud class action lawsuits such as this. If you would like to serve as one of the lead plaintiffs in this lawsuit, you must file the appropriate motion with the Court within 60 days of today. If you have any questions on how you may be able to recover for the losses you have incurred, please E-mail or call one of the following:
Steven E. Cauley
Scott E. Poynter
LAW OFFICES OF STEVEN E. CAULEY, P.A.
2200 N. Rodney Parham Road, Suite 218
Little Rock, AR 72212
Toll Free: 1-888-551-9944
E-mail: cauleypa@aol.com
SOURCE Law Offices of Steven E. Cauley, P.A.
© 1999 PR Newswire. All rights reserved.
This is starting to look more and more like a SHORT.
JD
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