/C O R R E C T I O N -- Schiffrin & Barroway, LLP/
June 28 2004 - 4:18PM
PR Newswire (US)
/C O R R E C T I O N -- Schiffrin & Barroway, LLP/ In the news
release, Shareholder Class Action Filed Against Central Freight
Lines, Inc. (Nasdaq: CENF) by the Law Firm of Schiffrin &
Barroway, LLP, issued Friday, June 25, by Schiffrin & Barroway,
LLP over PR Newswire, we are advised by the company that the second
paragraph, first sentence, should read "in connection with or
traceable to its December 2003 Initial Public Offering" rather than
"December 12, 2003" and the fourth paragraph, first sentence,
should read "The complaint charges Central Freight, Robert V.
Fasso, Jerry Moyes, and Jeffrey A. Hale with violations" rather
than "The complaint charges Central Freight, Robert V. Fasso,
Patrick J. Curry, and Jeffrey A. Hale with violations" as
originally issued inadvertently. Complete, corrected release
follows: BALA CYNWYD, Pa., June 25 /PRNewswire/ -- The following
statement was issued today by the law firm of Schiffrin &
Barroway, LLP: Notice is hereby given that a class action lawsuit
was filed in the United States District Court for the Western
District of Texas on behalf of all purchasers of Central Freight
Lines, Inc. (NASDAQ:CENF) ("Central Freight" or the "Company")
stock issued in connection with or traceable to its December 2003
Initial Public Offering ("IPO"). If you wish to discuss this action
or have any questions concerning this notice or your rights or
interests with respect to these matters, please contact Schiffrin
& Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.)
toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at .
The complaint charges Central Freight, Robert V. Fasso, Jerry
Moyes, and Jeffrey A. Hale with violations of the Securities Act of
1933. On December 12, 2003, Central Freight announced that had
completed an IPO of 8.5 million shares of stock pursuant to a
Prospectus/Registration Statement. The IPO was priced at $15.00 per
share for total net proceeds of $77.9 million after underwriting
discounts and commissions. In fact, the Prospectus/Registration
Statement was materially false and misleading and failed to
disclose, among other things, the following: (1) that the Company's
dynamic resource planning process implementation was going
disastrously; (2) that the Company's aggressive expansion projects
were negatively affecting the Company's margins; (3) that the
Company's insurance and claims accrual rate was off because the
Company failed to have sufficient reverses for accident frequency;
and (4) that the Company was experiencing severe operational
issues. As this adverse information was disclosed, the Company's
shares eventually plummeted to $8.55 per share. Public investors
who purchased shares pursuant to or shares traceable to the IPO
based on Central Freight's representations have suffered tens of
millions of dollars in damages. Plaintiff seeks to recover damages
on behalf of class members and is represented by the law firm of
Schiffrin & Barroway, which prosecutes class actions in both
state and federal courts throughout the country. Schiffrin &
Barroway is a driving force behind corporate governance reform, and
has recovered in excess of a billion dollars on behalf of
institutional and high net worth individual investors. For more
information about Schiffrin & Barroway, or to sign up to
participate in this action online, please visit
http://www.sbclasslaw.com/. If you are a member of the class
described above, you may, not later than August 24, 2004, move the
Court to serve as lead plaintiff of the class, if you so choose. A
lead plaintiff is a representative party that acts on behalf of
other class members in directing the litigation. In order to be
appointed lead plaintiff, the Court must determine that the class
member's claim is typical of the claims of other class members, and
that the class member will adequately represent the class. Under
certain circumstances, one or more class members may together serve
as "lead plaintiff." Your ability to share in any recovery is not,
however, affected by the decision whether or not to serve as a lead
plaintiff. You may retain Schiffrin & Barroway, or other
counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin & Barroway, LLP Marc A. Topaz, Esq. Stuart
L. Berman, Esq. Three Bala Plaza East, Suite 400, Bala Cynwyd, PA
19004 1-888-299-7706 (toll-free) or 1-610-667-7706 Or by e-mail at
DATASOURCE: Schiffrin & Barroway, LLP CONTACT: Marc A. Topaz,
Esq. or Stuart L. Berman, Esq., both of Schiffrin & Barroway,
LLP, +1-888-299-7706, +1-610-667-7706, Web site:
http://www.sbclasslaw.com/
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