NEW YORK, Dec. 17, 2004 (PRIMEZONE) -- Wechsler Harwood LLP today announced that it has filed a Federal Securities fraud class action suit on behalf of all purchasers of the common stock of Swift Transportation Co., Inc. (Nasdaq:SWFT) ("Swift" or the "Company") from October 16, 2003 through October 1, 2004, both dates inclusive (the "Class Period").
The action, entitled Tuttle v. Swift Transportation Co., Inc., et al., Case No. (not yet assigned), is pending in the United States District Court for the District of Arizona, and names as defendants, the Company, Gary R. Enzor, Patrick J. Farley, Jerry C. Moyes, and William F. Riley III. A copy of the complaint can be obtained from the Court or can be viewed on Wechsler Harwood web site at: www.whesq.com.
The complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the conditional safety rating given to the Company by the FMSCA was not an error, but rather a true representation of Swift's performance; (2) that making the internal changes necessary to improve the rating was fiscally prohibitive; (3) that the Company had to absorb the cost of the new Department of Transportation regulations requiring that drivers be paid for loading time and time waiting to load; (4) that as a consequence of the foregoing, the Company was losing its competitive position and revenue, however, in order to maintain the appearance of financial well-being, for the benefit of defendant Moyes' personal finances, the Company systematically under-depreciating its capital assets thereby artificially inflating its revenues; (5) that as a result of this, the Company's financial results were in violation of Generally Accepted Accounting Principles ("GAAP"); (6) the Company lacked adequate internal controls; and (7) the Company's financial results were materially inflated at all relevant times.
On September 15, 2004, Swift announced that it had adopted a new repurchase program, under which it may acquire up to $150 million of its common stock over the next several months. Additionally, Swift also announced that it expects Q3 earnings to range between 26 cents and 31 cents per share. This news shocked the market. Shares of Swift fell $2.18 per share, or 14.9 percent, on September 15, 2004, to close at $16.09 per share. On October 1, 2004, Swift announced that the previously disclosed informal inquiry by the SEC into certain stock trades by the company and insiders, including defendant Moyes, had become a formal investigation. The investigation centers around certain stock trades made by defendant Moyes as well as selected the Company repurchases. On this news, shares of Swift tumbled an additional $.95 per share, or 5.4 percent, on October 4, 2004, to close at $16.54 per share.
If you are a member of the class described above, you may, not later than January 4, 2005, to move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400