Stockholders v Asconi Corporation
Asconi Corporation Accused of Stock Fraud
Several class actions have been filed against wine importer Asconi Corporation (AMEX:ACD) and certain of its officers and directors by stockholders who purchased the company's common stock between May 15, 2003, and March 23, 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 defendants misrepresented Asconi's true financial condition and failed to disclose certain related party transactions. As a result, Asconi's financial statements were artificially inflated. Asconi has delayed filing its annual Report on Form 10-K with the SEC. Its stock price collapsed and the stock ceased trading temporarily after the collapse.
If you purchased securities issued by Asconi during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by June 15, 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 as you in this action, or you may choose to do nothing, and remain in the class as a silent member.
