Several class actions have been filed against soil contamination remediator Bennett Environmental, Inc., (AMEX:BEL; TSX:BEV) and certain of its officers and directors by American and Canadian stockholders who purchased the company's common stock between June 2, 2003, and July 22, 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.

Bennett is currently building a contaminated soil recycling plant in Belledune, New Brunswick. It also owns plants in St. Ambroise, Quebec and Cornwall, Ontario, which both specialize in cleaning up polluted dirt. The lawsuit alleges that the company was counting on a $200 million (CDN) military contract from New Jersey to supply its Quebec and New Brunswick plants. The job was to be the largest in the company's history, remediating 300,000 tonnes of creosote-contaminated soil. When the company admitted that contract was in jeopardy, and its publicly traded stock plummeted.

Bennett executives delayed the scheduled opening of the Belledune plant from the fall of 2004 to early 2005, until it can be sure it will have enough soil to feed the new facility. The lawsuit alleges that the company knew for at least a year that the New Jersey contract was in danger, but failed to pass that information along to shareholders. The suit claims the contract is now worth 78% less than the company originally disclosed.

The suit claims Bennett executives knew the military contract was in "great jeopardy" immediately after it was signed because of protests from an unsuccessful bidder. The shareholders claim Bennett violated anti-fraud provisions of American federal securities laws by telling investors the agreement was intact and failing to disclose that the U.S. Army had backed out of the agreement shortly after awarding it to Bennett. The suit also names as defendants former Bennett CEO John Bennett, who resigned on February 17, 2004, his replacement, and four senior company executives.

If you purchased securities issued by Bennett during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by September 27, 2004. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that your claim is typical of the claims of other class members, and that you will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiffs. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain any counsel of your choice to serve you in this action, or you may choose to do nothing, and remain in the class as a silent member.