NEW YORK, Feb. 25, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP announces that a class action lawsuit has been filed in the United States District Court for the Northern District of Illinois (Eastern Division) on behalf of purchasers of the securities of OfficeMax, Inc. ("OfficeMax" or the "Company") (NYSE:OMX) between January 22, 2004 and January 11, 2005, inclusive (the "Class Period"). The case number is 1:05cv1004.
The complaint names as defendants OfficeMax, George Harad (Chairman of the OfficeMax Board of Directors), Christopher Milliken (OfficeMax Chief Executive Officer), and Ted Crumley (OfficeMax Chief Financial Officer). The Complaint alleges that, during the Class Period, defendants made materially false and misleading statements with respect to OfficeMax's financial performance and internal controls. On December 20, 2004, the Company announced that it had launched an internal investigation into vendor claims, "that certain employees acted inappropriately in requesting promotional payments and in falsifying supporting documentation for approximately $3.3 million in claims billed to the vendor by OfficeMax during 2003 and 2004."
The complaint further alleges that on January 11, 2005, defendants announced that: (a) the Company's recently appointed Chief Financial Officer, Brian Anderson, had resigned; (b) the Company was postponing the release of its earnings for the fourth quarter and full year 2004 pending the conclusion of an investigation into issues relating to its accounting for vendor income; (c) the Company's investigation had confirmed the claims by a vendor to its retail business that certain employees fabricated supporting documentation for approximately $3.3 million in claims billed to the vendor by OfficeMax during 2004 and 2003; (d) the Company was expanding its investigation into vendor rebates and revenue recognition; and (e) the Company had terminated four employees as a result of information discovered through its investigation. On this news, the Company's stock fell $1.42, or 4.7%, to $28.88.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired OfficeMax securities between January 22, 2004 and January 11, 2005, and sustained damages, you may, no later than March 14, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca