LITTLE ROCK, Ark., Jan. 29, 2003 (PRIMEZONE) -- The deadline for purchasers of Spiegel, Inc. ("Spiegel", "Spiegel Group" or the "Company") (Pink Sheets:SPGLA) (formerly traded on Nasdaq as SPGLA) common stock to move for lead plaintiff in a securities fraud class action recently brought against the Company is rapidly approaching.
If you purchased Spiegel common stock between April 24, 2001 and April 19, 2002, inclusive (the "Class Period") and you wish to be a lead plaintiff in the case, you must move to serve as lead plaintiff by filing a motion in the United States District Court for the Northern District of Illinois, Eastern Division by February 14, 2003. A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.cauleygeller.com/library/user_images/spiegel.pdf.
The complaint, filed by a client of Cauley Geller, charges Spiegel, Inc., Spiegel Holdings, Inc. and certain officers and directors with issuing false and misleading statements concerning its business and financial condition. According to its press releases, throughout the Class Period, Spiegel was a "leading international specialty retailer marketing fashionable apparel and home furnishings to customers through catalogs, e-commerce sites, and more than 600 specialty retail and outlet stores. The Spiegel Group's businesses include Eddie Bauer, Newport News, Spiegel and First Consumers National Bank."
Specifically, the complaint alleges that Spiegel's financial statements and results of operations were each and all false and misleading and prepared in violation of GAAP, including, but not limited to SFAS 140 "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities", due to the fact that Spiegel's accounting of its credit card business improperly inflated its income and earnings, failed to account for increasing charge-offs, and grossly inflated the value of its securitized receivables.
On April 19, 2002, Spiegel finally revealed the true facts regarding the deterioration of its credit card business and the devastating impact of this deterioration on Spiegel's overall business health. On April 22, 2002, the next trading day following Spiegel's April 19, 2002 announcements, Spiegel's Class A Non-Voting Common Stock fell from a high of $3.15 on April 19, 2002 to a low of $1.01 on April 22, 2002 or a one-day decline of more than 67%, on ten times normal trading volume, and a decline of more than 90% from the Class Period high of $10.71. On June 3, 2002, the Nasdaq delisted "the company's Class A common stock on the Nasdaq National Market System effective with the open of business on June 3, 2002, based on the company's filing delinquencies and other public interest concerns."
If you bought Spiegel common stock between April 24, 2001 and April 19, 2002, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later February 14, 2003. If you are a member of this class, you can join this class action online at http://cauleygeller.com/template8.asp?pcode=6&pp=1. Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller is a national law firm that represents investors and consumers in class action and corporate governance litigation. It is one of the country's premiere firms in the area of securities fraud, with in-house finance and forensic accounting specialists and extensive trial experience. Since its founding, Cauley Geller has recovered in excess of two billion dollars on behalf of aggrieved shareholders. The firm maintains offices in Boca Raton and Little Rock.
If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.cauleygeller.com.
CAULEY GELLER BOWMAN & COATES, LLP Client Relations Department: Jackie Addison, Heather Gann or Sue Null P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@cauleygeller.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca