Fruchter & Twersky LLP Announces Class Action Lawsuit Against Royal Ahold N.V.
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The law firm of Fuchter & Twersky LLP announces that a class action lawsuit was filed on February 25, 2003 on behalf of purchasers of the securities of Koninklijke Ahold N.V. (Royal Ahold) (NYSE: AHO) between June 7, 2001 and February 24, 2003, inclusive. The action is pending before the Hon. Kimba M. Wood in the United States District Court, Southern District of New York, located at 500 Pearl Street, New York NY. 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 June 7, 2001 and February 24, 2003, thereby artificially inflating the price of Ahold American Depositary Receipts. The complaint alleges that in 2001 and 2002 Ahold issued quarterly press releases reporting the Company’s results of operations and financial condition. These press releases and it public filings with the SEC represented that the Company was growing at a breakneck pace. The complaint further alleges that on February 24, 2003 Ahold shocked the market when it issued a press release announcing that, among other things, Ahold’s operating earnings for fiscal year 2001 and expected operating earnings for fiscal year 2002 have been overstated by an amount that the company believes may exceed U.S. $500 million, and that the overstatements would require the restatement of Ahold’s financial statements for fiscal year 2001 and the first three quarters of 2002. The release further stated that the Company was investigating the legality of certain transactions at its Argentine Disco unit, and that the investigation had uncovered certain transactions that were questionable. On this news, the price of Ahold ADRs plummeted from a closing price of $10.69 on Friday, February 21, 2003, before the Company ’s announcement, to an opening price on the next trading day of $4.36, and subsequently closed the day at $4.16, down 61% from the previous day’s closing price. If you bought the ADRs of Ahold between June 7, 2001 and February 24, 2003, you may, no later than April 28, 2003, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Fruchter & Twersky LLP, or other counsel of your choice, to serve as your counsel in this action. Plaintiff is represented by the Law Firm of Fruchter & Twersky LLP which has significant experience in prosecuting investor class actions and actions involving financial fraud. If you have any questions concerning this case or your rights or interests with respect to these matters, please contact: Jack G. Fruchter, Esq. of Fruchter & Twersky LLP, One Pennsylvania Plaza, 19th Floor, New York, New York 10119, by telephone at (212) 279-5050, (800) 440-8986, by facsimile at (212) 279-3655, or by e-mail at JFruchter@FruchterTwersky.com. |