Stockholders v 99 Cents Only Stores (3/2004)
99 Cents Only Stores Stockholders
Several class actions have been filed against deep discount retailer 99 Cents Only Stores (NYSE: NDN) and certain of its officers and directors by stockholders who purchased the company's common stock between April 20, 2000, and February 4, 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.
Besides the company, the action names as defendants Helen Pipkin, Andrew Farina, Sherry Gold, David Gold, and Jose G. Gomez. The action alleges that the company will be required to restate its financial statements for applicable period and reverse reported income attributable to its previously operated Universal International division and increase its workers' compensation reserve for year end 2003 and possibly additional periods. Unlike most retailers which, when performing actuarial calculations of liability and accounting methodology, account for workers' compensation by discounting cash flow, the defendants allegedly schemed to inflate the company's income by using a gross basis.
If you purchased the securities issued by 99 Cents Only Stores, during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by May 5, 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 plaintiff. 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.
