LITTLE ROCK, Ark., Jan. 7, 2005 (PRIMEZONE) -- Emerson Poynter LLP, a national law firm with offices in Houston, Little Rock, and Seattle (http://www.emersonpoynter.com) announced today that it has initiated an investigation into possible violations of the Employee Retirement Income Security Act of 1974 ("ERISA") on behalf of the Participants and Beneficiaries of the Krispy Kreme Profit Sharing Stock Ownership Plan and the Krispy Kreme Doughnut Corp. Retirement Savings Plan.
Emerson Poynter's investigation focuses mainly on concerns that Krispy Kreme and other fiduciaries for the Plans may have breached their ERISA-mandated fiduciary duties of loyalty and prudence by (1) failing to prudently and loyally manage the Plans' assets by imprudently investing a significant amount of the Plans' assets in Krispy Kreme stock; (2) failing to monitor and provide fiduciary appointees with information that the appointing fiduciaries knew or should have known that the monitored fiduciaries must have in order to prudently manage the Plans' assets; (3) failing to provide complete and accurate information to participants and beneficiaries; and (4) breaching their duty to avoid conflicts of interest.
The Company recently announced that it would restate its earnings for fiscal 2004. As recently as August 21, 2003, the stock traded as high as $47.50 per share. Yesterday the stock closed at $9.80 per share.
Emerson Poynter LLP has substantial experience representing plan participants in ERISA action and investors in shareholder lawsuits. The firm represents investors and retirement plan participants throughout the nation in such actions as Enron, Reliant Energy, Goodyear, Cardinal Healthcare, Winn-Dixie, and ADC Telecommunications. The firm has offices in Houston, Texas, Little Rock, Arkansas, and Seattle, Washington, but represents investors, retirement plan participants and consumers throughout the nation.
If you are a member of one of the Plans and purchased or held Krispy Kreme stock through one of the Plans, please contact us by calling toll-free at 800.663.9817 or via e-mail at epllp@emersonpoynter.com.