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Lerach Coughlin Stoia & Robbins LLP Files Class Action Suit against Ferro Corporation

Published on 2004-07-29. Author : SpecialChem

 

NEW YORK -- Lerach Coughlin Stoia & Robbins LLP announced that a class action has been commenced in the United States District Court for the Northern District of Ohio on behalf of purchasers of Ferro Corporation ("Ferro") (NYSE:FOE) securities during the period between October 28, 2003 and July 22, 2004 (the "Class Period").

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges Ferro and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Ferro is a major international producer of performance materials sold to a broad range of manufacturers serving diverse markets throughout the world.

According to the complaint, on July 22, 2004, defendants revealed that the Company was slashing earnings expectations for the second quarter of fiscal 2004 by more than 70% based upon an internal review, purportedly conducted in conjunction with Ferro's closing its books for the quarter, which unearthed a multi-million dollar overstatement of earnings resulting from certain unspecified accounting manipulations. Upon this news, the price of Ferro shares fell by more than 16% to close at $20.68 per share.

The complaint alleges that defendants knew but concealed from the investing public, that (i) Ferro's polymer additives business was not profitable and was incurring greater losses than had been reported; (ii) that Ferro's efforts to raise the prices of its polymer additives to products to offset increasing "raw materials" costs had been ineffective, further eroding the Company's revenues and profits; (iii) that the Company's purportedly improving cost controls, especially regarding the Company's polymer additives business, was, in fact, the product of accounting manipulations that deferred and/or materially understated the true operating costs of the business from Ferro's public investors the increasing losses the Company was actually incurring from its polymer additive business; and (iv) that the Company's disclosure controls and procedures were wholly ineffective contrary to defendants Ortino's and Gannon's representations to investors.

Plaintiff seeks to recover damages on behalf of all purchasers of Ferro securities during the Class Period (the "Class"). The plaintiff is represented by Lerach Coughlin Stoia & Robbins LLP, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Lerach Coughlin Stoia & Robbins LLP, a 140-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston, Philadelphia and Seattle, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Lerach Coughlin Stoia & Robbins LLP lawyers have been responsible for more than $20 billion in aggregate recoveries.

Source: LCS&R, LLP


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