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Tempur-Pedic (NYSE: TPX) is a Lexington, Kentucky based
company that engages in the manufacture, marketing, and
distribution of advanced visco-elastic products under the
TEMPUR and Tempur-Pedic brands worldwide. Its products
include pillows, mattresses, and adjustable beds, as well
as cushions and other comfort products. Recently, many
of its investors, rather than sleeping comfortably, have
had fitful nights.
You can hardly blame them, as the price of Tempur-Pedic
stock has tumbled in the wake of recent revelations by the
Company. Specifically, on September 19, 2005,
Tempur-Pedic lowered its financial guidance for fiscal 2005.
On this news, shares of Tempur-Pedic common stock fell
$4.68 per share, or 28.5 percent, to close at $11.70 per
share.
As a result, shareholder litigation has been brought against
the Company on behalf of investors who purchased TPX
between April 22, 2005 and September 19, 2005. It is
alleged that Tempur-Pedic failed to disclose and
misrepresented material adverse facts or recklessly
disregarded them. In particular, the Company did not
disclose that the demand for its expensive visco-elastic
mattresses slowed and the Company faced increased
competition in its niche sector in the form of cheaper
offerings from Sealy, Simmons Bedding, and Serta
International.
Moreover, in light of this reality in the marketplace, the
Company’s encouraging statements about its business
prospects lacked any reasonable basis.
Generic Problems
Andrx Corp. (NasdaqNM: ADRX) engages in the
development, manufacture, and commercialization of
generic versions of pharmaceutical products. It develops
a range of generic products using controlled-release
drug delivery technologies; and niche and immediate-
release products, including oral contraceptives.
But, on September 6, 2005, the Company stunned the
market when it disclosed that the FDA had recently
placed a halt on approving its drug applications. As a
result of this announcement, Andrx stock dropped from
a closing price of $17.94 on September 5, 2005 to $14.89
on September 6, 2005 on heavy trading volume.
Shareholder litigation has been brought against ADRX on
behalf of investors who purchased its stock between
March 9, 2005 and September 5, 2005. Among other
things, it is alleged that the Company was aware of and
failed to disclose the fact that its manufacturing facilities
did not comply with all applicable good manufacturing
practices and was facing serious regulatory sanctions
as a result of these violations including a sanction that
would preclude the FDA’s approval of its pending and
future drug applications.
If you are an affected investor in Tempur-Pedic, Andrx
or any of the other companies under investigation listed
below, you may wish to contact us at
info@securitiessleuth.com to discuss your options.
Cases Under Investigation
Dana Corp (NYSE: DCN)
On October 10, 2005, the Company announced that it will
restate its 2004 financial results as well as its financial
results for the first and second quarters of fiscal year 2005.
Dana stocked dropped from $9.19 to $6.04, a drop of
approximately 34% on heavy volume. Investors who
purchased between April 21, 2004 and October 7, 2005
are affected.
Refco, Inc. (NYSE: RFX)
From a hot stock to a bankruptcy filing in two weeks. The
trouble began when the Company, which went public on
August 16, 2005, announced that it did not properly
disclose a $430 million receivable from an entity owned
by the Company’s CEO and that its financials going back
to fiscal 2002 should not be relied upon. Investors who
purchased from the IPO date through October 7, 2005
are affected.
AMERIGROUP Corp (NYSE: AGP)
On September 28, 2005, the Company revealed that it
had failed to account for at least $23 million in medical
costs in prior quarters and its stock plummeted after
this announcement. Investors who purchased AGP stock
between April 27, 2005 and September 14, 2005 are
affected.
First BanCorp (NYSE: FBP)
First BanCorp shareholders recently have seen their
stock plummet as a result of a series of negative
developments. First, the Company announced that the
SEC was conducting an informal inquiry into the Company
and subsequently announced that its CEO and CFO were
stepping down. Investors who purchased between
October 11, 2000 and September 30, 2005 may be affected.
Spectrum Brands, Inc. (NYSE: SPTM)
The Atlanta-based company projects “record” sales in
batteries, insiders sell and then the stock drops 31% after
the true state of the Company is revealed. Investors who
purchased between January 4, 2005 and September 6, 2005
are affected.
Lexmark International (NYSE: LXK)
On October 4, 2005 Lexmark stock dropped significantly after
the Company announced its financial results for the third
quarter of 2005 and indicated its 4th quarter would be
significantly below current analysts’ expectations. Prior to
this disclosure, the Company’s CEO sold approximately
48,000 shares of stock. Investors who purchased between
January 24, 2005 and October 4, 2005 may be affected.
Now with respect to settled cases. If you are an affected
investor – you purchased any of these stocks during the
relevant class period - you may wish to contact the claims
administrator to obtain additional information. Remember,
if you don’t submit your claim form, you won’t receive your
proportionate share of recovery.
Metromedia Fiber Network, Inc. (MFNX)
Class Period: January 8, 2001 to July 2, 2001
Claims Deadline: January 27, 2006 Gilardi
Claims Administrator: Gilardi
Micromuse, Inc. (MUSE)
Class Period: January 18, 2001 to May 17, 2004
Claims Deadline: January 9, 2006
Claims Administrator: A.B. Data
Homestore.com Inc. (HOMS)
Class Period: January 1, 2000 to Decembr 21, 2001
Claims Deadline: December 12, 2005
Claims Administrator: Rust Consulting
Healthtronics Surgical Services (HRTN)
Class Period: January 4, 2000 to July 28, 2003
Claims Deadline: December 31, 2005
Claims Administrator: Garden City
Contact info: info@gardencitygroup.com or 800.327.3664
Caminus Corp. (CAMZ)
Class Period: February 12, 2002 to July 8, 2002
Claims Deadline: October 26, 2005
Claims Administrator: Garden City
Contact info: info@gardencitygroup.com or 800.327.3664
Canadian Superior Energy (SNG)
Class Period: November 1, 2003 to March 11, 2004
Claims Deadline: November 15, 2005
Claims Administrator: Gilardi
Comerica, Inc. (CMA)
Class Period: July 17, 2002 to October 1, 2002
Claims Deadline: November 23, 2005
Claims Administrator: Garden City
Contact info: info@gardencitygroup.com or 800.327.3664
Quality Distributions, Inc. (QLTY)
Class Period: November 6, 2003 to January 18, 2005
Claims Deadline: December 23, 2005
Claims Administrator: Garden City
Contact info: info@gardencitygroup.com or 800.327.3664
Again, if you are affected by a settled case, then you should
contact the claims administrator (rather than us). However,
if you are an affected investor in any of the companies under
investigation, you many wish to contact us so that you
can consider your options.
Likewise, if you happen to be aware of corporate restatements
or other financial fraud -- especially if you're a victim --
you're encouraged to contribute to the Sleuth by giving your
own tip-offs at www.securitiessleuth.com or by e-mailing
info@securitiessleuth.com. You can also call Mark McNair
at 877-511-4717. If you have a friend or colleague you
think would benefit from The Sleuth, please pass along
this issue and ask them to sign up at
www.cartville.com/app/join.asp?MerchantID=47994.
Warmest regards,
Mark McNair
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