BALA CYNWYD, Pa., Aug. 28, 2002 (PRIMEZONE) -- A shareholder sued Supervalu, Inc. ("Supervalu" or the "Company") (NYSE:SVU) claiming that the company misled investors about its business and financial condition, as alleged in a complaint filed by the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the District of Minnesota and seeks damages for violations of federal securities laws on behalf of all investors who bought Supervalu, Inc. securities between April 4, 2001 and June 26, 2002 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Supervalu, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that the Minnesota-based Supervalu, Inc. issued statements regarding Supervalu's annual financial performance and filed reports confirming such performance with the United States Securities and Exchange Commission ("SEC"). The complaint alleges that these statements were materially false and misleading because, among other things, (i) the Company was employing improper accounting practices regarding the cost of goods sold for at least the past four years in violation of Generally Accepted Accounting Principles. As a result, the Company announced on June 26, 2002 that it expects $21 million in additional expenses; and (ii) based on the foregoing, defendants' statements concerning the financial condition of Supervalu were lacking in a reasonable basis at all times.
The impact of these announcements was immediately felt in the market. Shares of Supervalu fell sharply following the Company's statements on June 26, 2002. Supervalu stock closed on June 26, 2002, at $21.95 down approximately $6.11, or 22%. Subsequently, on July 1, 2002, a mere five days after the Company disclosed the existence of its internal investigation, Supervalu did, in fact, materially restate its financial statements for all of Fiscal Years 2000, 2001 and 2002.
If you purchased Supervalu, Inc. securities between April 4, 2001 through June 26, 2002, you may be a member of the class and have until September 10, 2002 to move the court to become a lead plaintiff. To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca