INVESTOR NOTICE: MURRAY, FRANK & SAILER LLP ANNOUNCES SHAREHOLDER LAWSUIT AGAINST ALLIED WASTE INDUSTRIES, INC. - AW
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NEW YORK, NY—(PrimeZone)— August 27, 2004: Murray, Frank & Sailer LLP announces that it filed a complaint in the District of Arizona on behalf of all securities purchasers of Allied Waste Industries, Inc. (NYSE: AW) ("Allied Waste" or the "Company") from February 10, 2004 through July 27, 2004, inclusive (the "Class Period").
The complaint charges Allied Waste, Thomas H. Van Weelden, Peter S. Hathaway, Thomas W. Ryan, and James E. Gray with violations of the federal securities laws. Allied Waste is a non-hazardous solid waste management company in the United States that provides collection, transfer, recycling and disposal services for approximately 10 million residential, commercial and industrial customers. The Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that Company’s internal growth, which the defendants touted as being strong, was lagging due to poor management execution and the loss of a large contract; (2) that defendants had failed to successfully implement the Company’s "best practices" initiatives because the Company lacked adequate internal controls; (3) that defendants knew or recklessly disregarded the fact that much-anticipated cyclical volume pickup of trash was not materializing; and (4) that as a result of the above, the defendants’ statements about the Company were lacking in any reasonable basis when made.
On July 27, 2004, Allied Waste posted earnings, excluding special items, of 15 cents a share on revenue of $1.36 billion. Wall Street, on average, had expected earnings of 18 cents a share on sales of $1.39 billion. Including costs related to early retirement of debt, Allied Waste posted a net loss of 7 cents a share. Following this announcement, J.P. Morgan cut the stock to "neutral" vs. "overweight" on the news. "AW’s big new focus on its ‘best practices’ initiatives now makes the investment story one primarily about management execution," said analyst Amanda Tepper. News of this shocked the market. Shares of Allied Waste fell $2.55 per share, or 20.83 percent, on unusually high trading volume, to close at $9.69 per share. This was Allied Waste's biggest drop in five years.
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 Allied Waste from February 10, 2004 through July 27, 2004, inclusive, and sustained damages, you may, no later than October 8, 2004, move the Court to serve as lead plaintiff of the class. Shareholders outside the United States may also join the action, regardless of where they live or 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]