As Court-Appointed Lead Counsel in Flooring America Class Action, Kirby McInerney & Squire LLP Seeks to Amend Complaint to Include Most Recent Restatements.Business/Legal Editors NEW YORK--(BUSINESS WIRE)--June 19, 2000 The following is an announcement by the law firm of Kirby McInerney & Squire LLP LLP - Lower Layer Protocol : By order dated February 8, 2000, the United States District Court for the Northern District of Georgia The U.S. District Court for the Northern District of Georgia serves the residents of forty-six counties. These are divided up into four districts. The Atlanta district includes: Cherokee, Clayton, Cobb, Internet Coffe Phone, Douglas, Fulton, Gwinnett, Henry, Newton, and appointed Kirby McInerney & Squire LLP as Lead Counsel in the consolidated securities fraud class actions filed beginning May 1999 on behalf of purchasers of shares of Flooring America, Inc. (NYSE NYSE See: New York Stock Exchange : FRA Fra: see Angelico, Fra; Bartolommeo di Pagholo del Fattorino, Fra; Fra Filippo Lippi under Lippi. ), then named the Maxim Group, Inc. (the "Company") (consolidated case No. 99-CV-1280). The consolidated class action complaint, which was filed on April 10, 2000, alleges that the Company and certain of its officers and directors had committed securities fraud by, inter alia [Latin, Among other things.] A phrase used in Pleading to designate that a particular statute set out therein is only a part of the statute that is relevant to the facts of the lawsuit and not the entire statute. , improperly reporting artificially inflated revenues and income. Indeed, as the Company admitted in May, July and October of 1999, the Company had reported false and misleading financial results for the fiscal year ended January 31, 1999, and each of the four quarters therein. The complaint alleges that these results, admittedly inflated by the company's improper recognition of revenues from vendor rebate programs, misled investors who purchased stock in a company whose losses were six times larger than it originally reported for fiscal 1999. The consolidated complaint was brought on behalf of all investors who purchased the Company's common stock between June 2, 1998 and July 13, 1999. Based upon recent events, Kirby McInerney & Squire will seek to file an amended consolidated complaint to take into account the Company's recent disclosure that it continued, via further improper recognition of revenue, to report false and inflated earnings not only for all four quarters of 1999 but for the first two quarters of fiscal 2000 as well. The new complaint will extend the class period to assert claims on behalf all investors who purchased Flooring America (or Maxim) common stock between June 2, 1998 and May 22, 2000, when the Company revealed the necessity for its most recent restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. of earnings. The amended consolidated complaint will allege To state, recite, assert, or charge the existence of particular facts in a Pleading or an indictment; to make an allegation. allege v. a common, continuous course of misconduct during the extended class period, and will assert claims based on that common course of misconduct against certain present and former officers and directors of the Company (which, on June 15, 2000, filed for bankruptcy protection). If you wish to discuss this action or have any questions concerning this release or your rights or interests with respect to these matters, you may call or write to: Ira M. Press, Esq. Orie Braun Kirby McInerney & Squire 830 Third Avenue, 10th Floor New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10022 Telephone: 212 371-6600 or toll free: 888 529 4787 Fax: 212 751-2540 E-mail: obraun@kmslaw.com |
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