Shareholder Class Action Filed Against Central Freight Lines, Inc. by the Law Firm of Schiffrin & Barroway, LLP
26 Giugno 2004 - 12:53AM
PR Newswire (US)
Shareholder Class Action Filed Against Central Freight Lines, Inc.
by the Law Firm of Schiffrin & Barroway, LLP BALA CYNWYD, Pa.,
June 25 /PRNewswire/ -- The following statement was issued today by
the law firm of Schiffrin & Barroway, LLP: Notice is hereby
given that a class action lawsuit was filed in the United States
District Court for the Western District of Texas on behalf of all
purchasers of Central Freight Lines, Inc. (NASDAQ:CENF) ("Central
Freight" or the "Company") stock issued in connection with or
traceable to its December 12, 2003 Initial Public Offering ("IPO").
If you wish to discuss this action or have any questions concerning
this notice or your rights or interests with respect to these
matters, please contact Schiffrin & Barroway, LLP (Marc A.
Topaz, Esq. or Stuart L. Berman, Esq.) toll-free at 1-888-299-7706
or 1-610-667-7706, or via e-mail at . The complaint charges Central
Freight, Robert V. Fasso, Patrick J. Curry, and Jeffrey A. Hale
with violations of the Securities Act of 1933. On December 12,
2003, Central Freight announced that had completed an IPO of 8.5
million shares of stock pursuant to a Prospectus/Registration
Statement. The IPO was priced at $15.00 per share for total net
proceeds of $77.9 million after underwriting discounts and
commissions. In fact, the Prospectus/Registration Statement was
materially false and misleading and failed to disclose, among other
things, the following: (1) that the Company's dynamic resource
planning process implementation was going disastrously; (2) that
the Company's aggressive expansion projects were negatively
affecting the Company's margins; (3) that the Company's insurance
and claims accrual rate was off because the Company failed to have
sufficient reverses for accident frequency; and (4) that the
Company was experiencing severe operational issues. As this adverse
information was disclosed, the Company's shares eventually
plummeted to $8.55 per share. Public investors who purchased shares
pursuant to or shares traceable to the IPO based on Central
Freight's representations have suffered tens of millions of dollars
in damages. Plaintiff seeks to recover damages on behalf of class
members and is represented by the law firm of Schiffrin &
Barroway, which prosecutes class actions in both state and federal
courts throughout the country. Schiffrin & Barroway is a
driving force behind corporate governance reform, and has recovered
in excess of a billion dollars on behalf of institutional and high
net worth individual investors. For more information about
Schiffrin & Barroway, or to sign up to participate in this
action online, please visit http://www.sbclasslaw.com/. If you are
a member of the class described above, you may, not later than
August 24, 2004, 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
Schiffrin & Barroway, or other counsel of your choice, to serve
as your counsel in this action. CONTACT: Schiffrin & Barroway,
LLP Marc A. Topaz, Esq. Stuart L. Berman, Esq. Three Bala Plaza
East, Suite 400, Bala Cynwyd, PA 19004 1-888-299-7706 (toll-free)
or 1-610-667-7706 Or by e-mail at DATASOURCE: Schiffrin &
Barroway, LLP CONTACT: Marc A. Topaz, Esq. or Stuart L. Berman,
Esq., both of Schiffrin & Barroway, LLP, +1-888-299-7706,
+1-610-667-7706, Web site: http://www.sbclasslaw.com/
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