NEW YORK, March 23, 2009 (GLOBE NEWSWIRE) -- Roy Jacobs & Associates has commenced a class action lawsuit in the United States District Court, Northern District of Indiana on behalf of purchasers of the securities of Steel Dynamics, Inc. ("STLD" or the "Company") (Nasdaq:STLD) for the period from January 27, 2009 through March 11, 2009, (the "Class Period"), seeking damages for the violation of the federal securities laws.
For further information, please contact Roy L. Jacobs, Esq. toll-free at 1-888-884-4490 or by e-mail to rjacobs@jacobsclasslaw.com. You may also visit the firm's website at www.jacobsclasslaw.com.
The complaint alleges that STLD and certain of its officers and directors violated the federal securities laws by making false and misleading statements regarding the Company's business and financial results. Defendants failed to disclose that: a) demand for STLD's products showed continuing weakness in Q1 2009; b) STLD's inventories in its Flat Roll Division were at excessive levels and were materially impaired by approximately $70 million; c) given the continuing weakness in demand for STLD's products in Q1 2009, and in the absence of any existing facts to indicate or exhibit a reversal in that adverse trend, as well as the impaired value of inventories in STLD's Flat Roll Division, defendants lacked a reasonable basis for their positive earnings guidance for Q1 2009; and d) Defendant Bates engaged in unusual insider selling of his own STLD shares, realizing proceeds of in excess of $30 million at prices far higher than the STLD current trading price.
On March 11, 2009, the defendants unexpectedly revised first quarter 2009 guidance and admitted that the Company would suffer a significant loss instead of a profit, and further revised guidance downward for the remainder of 2009. As a result, the price of STLD's common stock dropped 15% to close at $7.25, on greatly increased trading volume.
If you bought STLD shares during the Class Period, from January 27, 2009 through March 11, 2009 and are interested in discussing your rights free of charge, please contact Roy L. Jacobs. Mr. Jacobs will be glad to personally speak with you. All motions for appointment as Lead Plaintiff must be filed by May 15, 2009. You are not required to have sold your shares to seek damages or serve as a Lead Plaintiff.
You may also sign up at our website at www.jacobsclasslaw.com.