INVESTOR NOTICE: MURRAY, FRANK & SAILER LLP HAS FILED A SHAREHOLDER CLASS ACTION AGAINST CONAGRA FOODS, INC - CAG
New York, NY (PrimeZone) June 22, 2005 - MURRAY, FRANK & SAILER LLP has filed a class action lawsuit in the United States District Court for the District of Nebraska on behalf of shareholders who purchased or otherwise acquired the securities of ConAgra Foods, Inc. (“ConAgra” or the “Company”) (NYSE: CAG) between September 18, 2003 and June 7, 2005, inclusive (the “Class Period”).
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The complaint charges certain of the Company's executive officers with violating Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b 5 promulgated thereunder by issuing materially false and misleading financial statements to the investing public regarding the Company’s financial performance and prospects.
ConAgra is a packaged food company serving a wide variety of food customers. The complaint alleges that during the Class Period, defendants made materially false and misleading statements regarding the Company's business and prospects and issued false and misleading financial statements. According to the complaint, as a result of defendants' false statements, ConAgra's stock traded at inflated levels as high as $30 per share during the Class Period, which allowed its top officers to reap tens of millions of dollars in ill-gotten bonuses. Among the facts concealed from the investing public during the Class Period, included the following: (1) the Company lacked requisite internal controls, and, as a result, the Company's projections and reported results were based upon defective assumptions and/or manipulated facts; (2) contrary to defendants' claims of fourth quarter 2005 and/or fiscal year 2005 profitability, the Company was actually on track to report losses; (3) the Company's income was overstated due to improper tax accounting; and (4) as a result of the above, the Company's projections for fiscal year 2005 were grossly inflated.
On March 24, 2005, the Company announced it would be restating its financial statements for fiscal 2002 through the first half of fiscal 2005 due to improper accounting for income taxes. ConAgra stock fell to around $26 per share on this news. Then, on June 7, 2005, the Company announced that its fiscal 2005 fourth quarter would be lower than expected primarily due to continued weak profitability in the packaged meats operations. On this news the stock fell further to $24.32 per share.
MURRAY, FRANK & SAILER LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired ConAgra securities on any world exchange between September 18, 2003 and June 7, 2005, and sustained damages, you may, no later than August 22, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Eric J. Belfi or Christopher Hinton of MURRAY, FRANK & SAILER LLP.
Murray, Frank & Sailer LLP
Eric J. Belfi
(800) 497-8076 or (212) 682-1818
Fax: (212) 682-1892
Email: [email protected]