According to a press release dated August 12, 2005, the complaint charges AIPC and certain of its present or former officers and directors with violations of the Securities Exchange Act of 1934. AIPC engages in the production and marketing of dry pasta in North America. According to the Complaint, the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the defendants failed to properly expense $6.6 million in promotional allowances and related customer deduction receivables during the Class Period; (2) that defendants failed to take timely write downs for spare parts inventory, which caused the Company to take a $5.4 million charge; (3) that defendants maintained inadequate reserves for slow moving, damaged and discontinued inventories; (4) that the Company failed to record $1.9 million in certain fixed asset retirements during the Class Period; (5) that as a result of this, the Company's financial results were in violation of generally accepted accounting principles ("GAAP"); (6) that the Company lacked adequate internal controls; and (7) that as a result of the above, the Company's financial results were materially inflated at all relevant times.

The complaint further alleges that on or around August 9, 2005, after the market closed, AIPC announced a $60.7 million charge and a Securities and Exchange Commission ("SEC") inquiry. More specifically, the Company stated the SEC was investigating it for various unspecified financial restatements and for transactions of the company's stock by outsiders in late 2004 and early 2005, for which the Company had received inquiries from the New York Stock Exchange and the Philadelphia Stock Exchange. Additionally, the Company stated that it was delaying the release of its full financial results for the third fiscal quarter ended July 1, 2005, and was also delaying the filing of its third quarter Form 10-Q with the SEC. Moreover, AIPC stated that its Audit Committee is conducting an internal investigation of certain accounting procedures and practices and certain other matters.

If you bought American Italian Pasta Company securities between October 25, 2000 and August 09, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.