NEW YORK, June 1, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit on behalf of shareholders who purchased or otherwise acquired the securities of Collins & Aikman ("Collins & Aikman" or the "Company") (Pink Sheets:CKCRQ) (NYSE:CKC) between May 6, 2004 and March 17, 2005, inclusive (the "Class Period").
If you purchased or otherwise acquired Collins & Aikman securities on any world exchange between May 6, 2004 and March 17, 2005, and sustained damages, you may, no later than June 6, 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.
The Complaint alleges that, during the Class Period, defendants issued materially false and misleading statements that materially overstated the value of the Company's revenue and net income. On March 17, 2005, Collins & Aikman issued a press release announcing that it had commenced an internal review of how it was accounting for supplier rebates. This review revealed that the Company was prematurely or inappropriately recognizing revenue and would cause the Company to restate its results that will reflect a reduction of its previously reported operating income by $10 - $12 million for the nine months ended September 30, 2004.
The complaint alleges that statements made by the Company concerning its financial results were materially false and misleading because defendants knew, but failed to disclose and/or misrepresented that the Company lacked adequate internal controls that would allow it to ascertain its true financial performance and condition and was further materially overstating its financial results by engaging in improper accounting practices that will require the Company to restate its results for the at least the first three quarters of 2004.
On May 17, 2005, the Company announced that it had filed to reorganize under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of Michigan.
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 would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Christopher S. Hinton of Murray, Frank & Sailer LLP.