NEW YORK, Oct. 5, 2004 (PRIMEZONE) -- Goodkind Labaton Rudoff & Sucharow LLP filed a class action lawsuit on October 3, 2004 in the United States District Court for the Eastern District of Pennsylvania, on behalf of persons who purchased or otherwise acquired publicly traded securities of Stonepath Group, Inc. ("Stonepath" or the "Company") (AMEX:STG) between May 7, 2003 and September 20, 2004, inclusive, (the "Class Period"). The lawsuit was filed against Stonepath, Dennis L. Pelino, Bohn H. Crain and Thomas L. Scully ("Defendants").
If you are a member of this class you can view a copy of the complaint and join this class action online at http://www.glrs.com/get/?case=StonePath
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that the Company failed to disclose and misrepresented that it understated its accrued purchase transportation liability and related costs of purchased transportation. Through this understatement, the Company's liabilities and expenses were understated, thus overstating net income and earnings before income, taxes, depreciation, and amortization ("EBITDA"). As a result, the Company's reported financial results were in violation of Generally Accepted Accounting Principles ("GAAP").
On September 20, 2004, the Company reported that it intended to restate its fiscal 2003 and first and second fiscal quarters of 2004 financial statements. In reaction to this news, the share price of Stonepath closed at $0.086 per share, representing a 46% decline from the previous day's closing price.
Plaintiffs are represented by the law firm of Goodkind Labaton Rudoff & Sucharow LLP. Goodkind Labaton is one of the country's premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts. Goodkind Labaton was recently ranked fourth in total recoveries in 2003 among the top 50 plaintiffs' law firms by Institutional Shareholder Services (ISS), the world's leading provider of proxy and corporate governance services. Notably, Goodkind Labaton recovered over half a billion dollars for its clients last year.
If you bought Stonepath securities between May 7, 2003 and September 20, 2004, inclusive, you may qualify to serve as Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than November 23, 2004. If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, please contact one of our representatives or Christopher Keller, Esq. at 800-321-0476.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca