Cauley & Geller, LLP Announces Class Action Lawsuit Against Federated Department Stores, Inc. Seeking Damages On Behalf of Shareholders.Business Editors/Legal Writers BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--Sept. 5, 2000 The Law Firm of Cauley & Geller, LLP LLP - Lower Layer Protocol announced today that it has filed a class action in the United States District Court United States District Court In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. for the Southern District of 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 on behalf of all individuals and institutional investors that purchased the common stock of Federated Connected and treated as one. See federated database and federated directories. Department Stores, Inc. ("Federated" or the "Company") (NYSE NYSE See: New York Stock Exchange :FD) between February 23, 2000 and July 20, 2000, inclusive (the "Class Period"). The complaint charges that the Company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading information about the Company's financial condition. Specifically, as alleged in the complaint, on February 23, 2000, Federated issued a press release announcing its financial results for its 1999 fiscal year, which highlighted an 18% increase in year-over-year earnings per share. This statement, the complaint alleges, was materially false and misleading because Federated failed to disclose that it had materially under-reserved for credit delinquencies in its Federated Direct division, which was largely composed of Fingerhut Inc.- a Federated subsidiary. When the Company revealed, in a July 20, 2000, press release, that rising credit delinquencies coupled with insufficient reserves for such defaults, would lead to, among other things, a $200-$250 million shortfall in Federated's fall earnings, the Company's stock price plunged by 15% to $23.5 per share- which represented a 44% drop from the class period high of $42.0625 per share on March 21, 2000. Cauley & Geller, LLP has substantial experience representing investors in securities fraud class action lawsuits class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you must meet certain requirements and take appropriate action by October 23, 2000. You are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com. |
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