Schatz & Nobel, P.C. Announces Class Action Lawsuit Against Central Freight Lines, Inc.
June 29 2004 - 10:03PM
PR Newswire (US)
Schatz & Nobel, P.C. Announces Class Action Lawsuit Against
Central Freight Lines, Inc. NEW YORK, June 29 /PRNewswire/ -- The
law firm of Schatz & Nobel, P.C., which has significant
experience representing investors in prosecuting claims of
securities fraud, announces that a lawsuit seeking class action
status has been filed in the United States District Court for the
Western District of Texas on behalf of all persons who purchased
the publicly traded securities of Central Freight Lines, Inc.
(NASDAQ:CENF) ("Central Freight") issued in connection with or
traceable to its December 12, 2003 Initial Public Offering ("IPO").
The Complaint alleges that Central Freight, a regional freight
carrier, and certain of its officers and directors issued
materially false statements in the Prospectus/Registration
Statement. 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: (i) that the Company's dynamic
resource planning process implementation was going disastrously;
(ii) that the Company's aggressive expansion projects were
negatively affecting the Company's margins; (iii) that the
Company's insurance and claims accrual rate was off because the
Company failed to have sufficient reverses for accident frequency;
and (iv) 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. If you are a member
of the class, you may, no later than August 24, 2004 request that
the Court appoint you as lead plaintiff of the class. A lead
plaintiff is a class member that acts on behalf of other class
members in directing the litigation. Although your ability to share
in any recovery is not affected by the decision whether or not to
seek appointment as a lead plaintiff, lead plaintiffs make
important decisions which could affect the overall recovery for
class members, including decisions concerning settlement. The
securities laws require the Court to consider the class member(s)
with the largest financial interest as presumptively the most
adequate lead plaintiff(s). For more information about the case,
its claims, and your rights, please contact Schatz & Nobel
toll-free at (800) 797-5499, or by e-mail at . To view a copy of
the lawsuit initiating the class action, or for more information
about class action cases and Schatz & Nobel, please visit our
website: http://www.snlaw.net/. DATASOURCE: Schatz & Nobel,
P.C. CONTACT: Nancy A. Kulesa of Schatz & Nobel, P.C.,
1-800-797-5499, or Web site: http://www.snlaw.net/
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