Several class actions have been filed against bulk transporter Quality Distribution, Inc. (Nasdaq:QLTY) and certain of its officers and directors by stockholders who purchased the company's common stock between November 7, 2003, and February 2, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

The action alleges that the prospectus that was filed in connection with Quality Distribution’s November 7, 2003, initial public offering was materially false and misleading, in that the company overstated its financial results for fiscal years 2001 through 2003. The statements were allegedly prepared without reference to generally accepted accounting principles, and thus were merely “window-dressing” to get the investing public to purchase the company’s stock. The action also alleges that the registration statement that Quality Distribution filed with the SEC was erroneous.