LITTLE ROCK, Ark., Jan. 9, 2002 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that a class action has been filed in the United States District Court for the Eastern District of Wisconsin on behalf of purchasers of APW, Ltd. ("APW" or the "Company") (NYSE:APW) common stock during the period between September 26, 2000 and March 20, 2001, inclusive (the "Class Period"). 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.classlawyer.com/pr/apw.pdf.
The complaint charges APW and certain of its officers and directors with issuing a series of material misrepresentations to the market before and during the Class Period, thereby artificially inflating the price of APW common stock. Specifically, the complaint alleges that throughout the Class Period, defendants repeatedly issued statements indicating that, among other things, the Company was growing at a rapid pace, due, in significant part, to strong demand for its product offerings by its customers. The complaint alleges that these statements were materially false and misleading because, among other things, they failed to disclose or misrepresented that (a) in fact, the Company was experiencing decreased demand for its products as its primary customers were substantially decreasing their orders; (b) due to the declining demand, APW's customers were overstocked with APW products and, accordingly, would be decreasing their orders in the future while they worked down their bloated inventories; and (c) in response to these negative factors, APW was attempting to slash costs and, in this regard, had started to reduce its workforce. On March 20, 2001, defendants finally disclosed this information and reported that the Company's sales growth had slowed dramatically and reported a loss of $0.15 per share, compared to analysts' expectations of a $0.27 per share profit. Defendants also disclosed that the Company's reduced performance, combined with other factors, caused the Company to be in breach of certain covenants in its credit agreement. In response to this announcement, the price of APW common stock dropped from $20.65 per share on March 20, 2001, to close at $7.39 per share on March 21, 2001. Prior to this disclosure, defendant William P. Albrecht was able to sell shares of his personally held stock for gross proceeds of more than $1.7 million and the Company was able to complete its acquisition of Mayville Metal Products, which was partially paid for using the Company's stock as currency.
If you bought APW common stock between September 26, 2000 and March 20, 2001 inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than February 8, 2002. If you are a member of this class, you can join this class action online at http://www.classlawyer.com/sign_up.html. Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller Bowman & Coates, LLP or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents investors throughout the nation. 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.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Investor Relations Department: Jackie Addison, Sue Null or Shelly Nicholson P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.