Class Action Suit Filed Against Rexall Sundown, Inc., Its Senior Management and Certain Of Its Directors.CHICAGO--(BUSINESS WIRE)--Dec. 9, 1998--A class action has been commenced in the United States District Court for the Southern District of Florida The United States District Court for the Southern District of Florida (S.D.Fl.) is the federal district court covering the southern part of the state of Florida. The court's jurisdiction comprises the following counties: Broward, Dade, Highlands, Indian River, Martin, Monroe, on behalf of purchasers of the publicly traded securities of Rexall Sundown, Inc. ("Rexall") (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : RXSD) during the period March 19, 1998 to November 5, 1998 (the "Class Period"). The complaint charges that Rexall, its senior management and certain of its directors violated vi·o·late tr.v. vi·o·lat·ed, vi·o·lat·ing, vi·o·lates 1. To break or disregard (a law or promise, for example). 2. To assault (a person) sexually. 3. the Securities Exchange Act of 1934 by issuing false and misleading statements and omissions. Throughout the Class Period, the complaint alleges that Rexall's earnings were being pressured by competition from private label vitamin sales by its largest customers but, rather than reveal this fact, defendants embarked on a scheme to stuff its distribution channels with inventory in order to report these shipments as sales and fraudulently fraud·u·lent adj. 1. Engaging in fraud; deceitful. 2. Characterized by, constituting, or gained by fraud: fraudulent business practices. inflate inflate - deflate Rexall's sales and earnings. While Rexall's securities were artificially inflated by this scheme, Rexall's senior management and many of its directors sold an extraordinary amount of their own shares in the company, almost one million shares altogether, for proceeds in excess of $35 million. The complaint alleges that the truth was revealed on November 5, 1998. On that day, Rexall's stock plummeted approximately 40% from $22.00 per share on November 4, 1998 to $13.125 on November 5, 1998 or a drop of approximately 65% from the Class Period high. Plaintiffs are represented by Kahn & Associates, Ltd., a Chicago-area firm. Kahn & Associates has substantial expertise in prosecuting investor class actions involving financial fraud and has been actively engaged in commercial litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. in federal and state courts throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. for more than 20 years. If you are a member of the Class described above, you may, no later than 60 days from November 9, 1998, move the Court to serve as lead plaintiff of the Class, if you so choose. If you wish to discuss this action or have any questions concerning this notice, please contact plaintiff's counsel, David B. Kahn or Mark E. King of Kahn & Associates at 847/501.5083 or e-mail at DBKLAW@FLASH.NET. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion