A class action lawsuit has been filed by the law office of Alfred G Yates Jr PC on behalf of purchasers of securities of Winn-Dixie Stores Inc from May 6, 2002, through Jan 29, 2004. This action is pending in the United States District Court for the Middle District of Florida.
The complaint charges Winn-Dixie and its senior executive officers Allen Rowland, Frank Lazaran, and Richard P McCook with violations of the Securities Exchange Act of 1934. According to the lawsuit, defendants issued a series of material misrepresentations concerning the company's financial condition. They allegedly assured investors that Winn-Dixie was successfully executing its business plan to completely restructure the company and its stores and to restore profitability. Defendants also reportedly announced the issuance of cash dividends as an additional sign of purported financial health.
On January 30, 2004, Winn-Dixie announced a second-quarter 2004 loss of nearly $80 million, or $0.57 per share. Defendants then announced that dividend payments would be suspended indefinitely, after assuring investors a few days earlierÑJan 20, 2004Ñthat the dividend would be paid and that the company was moving forward with its business plan. In response to the news, Winn-Dixie stock plunged nearly 28%.
For more information, phone 800-391-5164 or 412-391-5164 or e-mail [email protected]