INVESTOR NOTICE: MURRAY, FRANK & SAILER LLP FILES CLASS ACTION AGAINST BENNETT ENVIRONMENTAL INC. - BEL
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NEW YORK (PrimeZone) August 4, 2004: Murray, Frank, & Sailer LLP announces that a class action lawsuit has been on behalf of all purchasers of Bennett Environmental Inc. ("Bennett" or the "Company") (AMEX: BEL) common stock during the period from June 2, 2003 through July 22, 2004, inclusive (the "Class Period").
The complaint alleges that Bennett and certain of its senior officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The alleged violations stem from the dissemination of false and misleading statements, which had the effect - during the Class Period - of artificially inflating the price of Bennett's shares.
More specifically, the complaint alleges that on June 2, 2003, the Company announced that it had received the largest contract in the Company's history. The press release stated that Bennett had been awarded a contract to treat approximately 300,000 tons of soil at the Federal Creosote Superfund Site in New Jersey. The company reported that it valued the contract, slated to be completed in 2005, at $200 million (Canadian). John Bennett, Bennett's Chairman and CEO, said, "This [contract], together with previously announced contracts, ensures that we will have a very successful year in 2003 and beyond in terms of meeting our financial and operation goals." In the seven months after the announcement, Bennett shares doubled in value.
On July 22, 2004, Bennett announced that the contract performance by Army Corps of Engineering, the entity who awarded Bennett the contract, had been in question since August of 2003, despite the eleven months of releases and announcements by the company to the contrary. An unsuccessful bidder on the soil treatment contract had disputed the award, and, in the aftermath, the Company was clueless about the contract's status and the Army's future performance. In fact, the Company had to resort to Freedom of Information Act inquiries, among other things, to ascertain the contract's status. On this news, the stock price fell from $10.50 to $7.80, a 25% one-day drop and 64% off its Class Period high of $21.89.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or acquired the common stock of Bennett between June 2, 2003 through July 22, 2004, inclusive, and sustained damages, you may, no later than September 27, 2004, move the Court to serve as lead plaintiff of the class. 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 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 Aaron D. Patton of Murray, Frank & Sailer LLP.
MURRAY, FRANK & SAILER
Eric J. Belfi
Fax: (212) 682-1892
Email: [email protected]