NEW YORK, June 1, 2001 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Northern District of California on behalf of all purchasers of U.S. Aggregates, Inc. ("U.S. Aggregates" or the "Company") (NYSE:AGA) securities between April 25, 2000 and April 2, 2001, inclusive (the "Class Period").
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Among other things, plaintiff claims that the defendants issued a series of false and misleading press releases concerning U.S. Aggregates' financial condition and business prospects. As a result, the price of the Company's common stock was artificially inflated throughout the Class Period. On April 3, 2001, however, the true state of the Company's finances were revealed when the Company issued a press release stating that it was restating earnings for the first three quarters of 2000. Specifically, the press release noted that for the first quarter 2000, "the Company will restate its net loss of $2.6 million, or $0.17 per diluted share, to a net loss of $5.1 million, or $0.34 per diluted share. For the second quarter, the Company will restate its net income of $6.8 million, or $.0.45 per diluted share, to net income of $3.1 million, or $0.20 per diluted share. For the third quarter, the Company will restate its net income of $5.5 million, or $0.36 per diluted share, to net income of $1.7 million, or $0.11 per diluted share." Besides restating the first three quarters of 2000, the Company revealed that it was delaying the filing of Form 10-K for 2000. In response, the stock price of U.S. Aggregates plummeted to $4.30, or more than 79% lower than the Class Period high of $20.25.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired U.S. Aggregates securities between April 25, 2000 and April 2, 2001, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you purchased U.S. Aggregates securities during the Class Period, you may, not later than July 2, 2001, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail (FaruqiLawAV@aol.com)
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca