LITTLE ROCK, Ark., June 6, 2002 (PRIMEZONE) -- The Emerson Firm, a securities class action law firm, announced today that a class action has been filed in the United States District Court for the Southern District of Florida, Miami Division on behalf of purchasers of Concord Camera Corp. ("Concord" or the "Company") (Nasdaq:LENS) publicly traded securities during the period between January 18, 2001 and June 22, 2001, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be obtained from The Emerson Firm.
The complaint alleges that defendants Concord, Harlan Press and Ira B. Lampert violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between January 18, 2001 and June 22, 2001, thereby artificially inflating the price of Concord securities. The complaint alleges that, throughout the Class Period, defendants issued a series of materially false and misleading statements which failed to disclose that (i) no less than $15,777,000, more than 45% of the Company's receivables, represented an unsecured and delinquent balance due from one single customer -- KB Gear; (ii) this delinquent $15,777,000 receivable balance was uncollectible; and (iii) due to KB Gear's inability to pay for merchandise, the Company was stuck with a large quantity of customized higher-cost specialty components which had no alternative use and were non-salable.
On June 22, 2001, the last day of the Class Period, the Company issued a press release revising its fourth quarter guidance and disclosing for the first time that: (i) excess inventory positions at many of the Company's customers and the resulting changes in their purchasing patterns have adversely affected inventory sales; (ii) the Company will record the following one-time charges against income in the quarter: $15.8 million accounts receivable provision, $4.3 million inventory provision, $1.4 million restructuring charge; and (iii) the accounts receivable provision and $2.0 million of the inventory provision relate to a financially troubled former customer of the Company with respect to which management has concluded that workout efforts are not likely to be successful. In response to these disclosures, the price of Concord stock plummeted over 20% to close at $6.02.
If you bought Concord publicly traded securities between January 18, 2001 and June 22, 2001, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than June 24, 2002. Any member of the purported class may move the Court to serve as lead plaintiff through The Emerson Firm or other counsel of their choice, or may choose to do nothing and remain an absent class member.
The Emerson Firm has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Texas and Arkansas, 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.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca