NEW YORK, March 24, 2003, (PRIMEZONE) -- On February 6, 2003, Wolf Popper LLP filed a securities lawsuit against Cosi, Inc. (Nasdaq:COSI) on behalf of persons who purchased Cosi common stock on its initial public offering ("IPO") on November 21, 2002, or who purchased Cosi common stock on the open market from November 21, 2002 through February 3, 2003.
Defendants in the action include Cosi, certain of the company's executive officers and members of its Board of Directors, as well as William Blair & Co., the underwriter of the IPO.
The plaintiff alleges in the action that the Prospectus for the IPO contained materially false and misleading statements concerning the company's business prospects and the expected use of IPO proceeds. Specifically, the Complaint alleges that the company misrepresented its ability to use the IPO proceeds to open 53 to 59 restaurants in 2003.
Ten short weeks after the offering, on February 3, 2003, the company announced that the financing from the offering was inadequate to continue its expansion and that Cosi expected to open only 10 company-owned restaurants in 2003. Following the disclosure, the price per share of Cosi common stock fell $1.67 or almost 40% to close on February 4, 2003 at $2.80 per share. Shares of Cosi currently trade at $2.05 per share.
On February 25, 2003, after the filing of the Complaint, Cosi issued a press release reporting operating results for the year ended December 31, 2002. In connection with that press release, Cosi acknowledged that restaurants opened in September and October 2002 -- prior to the offering -- had underperformed the company's expectations. The poor performance of those restaurants, which influenced Cosi's decision to discontinue its expansion, were clearly material facts that were omitted from the Prospectus for the November 21, 2002 IPO.
Class members have until April 7, 2003 to file motions to be appointed lead plaintiff. Class members who acquired shares of Cosi common stock in the IPO or during the Class Period, and other persons with information that may be helpful to the prosecution of the action, are urged to contact Wolf Popper LLP, a New York law firm specializing in class action litigation, concerning their rights at:
Wolf Popper LLP Robert Finkel, Esq. 845 Third Avenue, New York, NY 10022 Tel.: 212.451.9620, Toll Free: 877.370.7703 Fax: 212.486.2093, Toll Free: 877.370.7704 Email: irrep@wolfpopper.com website: www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.