Stockholders v Fleetwood Enterprises, Inc.
Stockholders File Lawsuit Against Fleetwood Enterprises, Inc.
According to a press release dated September 01, 2009, the complaint alleges that, throughout the Class Period, defendants made numerous positive statements regarding the Company's financial condition, business and prospects. The complaint further alleges that these statements were materially false and misleading because defendants failed to disclose the following adverse facts, among others: (i) that demand for Fleetwoods manufactured houses and the big homes-on-wheels was rapidly declining, and was adversely affecting the Companys liquidity; (ii) that the Companys RV Group sales, especially in its travel trailer division, were declining because of softening consumer demand due to high gasoline prices and the credit crisis; (iii) that the Companys financial condition was declining precipitously such that the Company was nearing insolvency and would have to file for bankruptcy protection; and (iv) based on the foregoing, defendants had no reasonable basis for their positive statements regarding the Companys ability to control its deteriorating financial condition.
On March 10, 2009, Fleetwood issued a press release announcing that it had filed voluntary Chapter 11 petitions for itself and certain operating subsidiaries in the U.S. Bankruptcy Court for the Central District of California. The Company also announced that it was closing its travel trailer division. As a direct result of information disclosed at the end of the Class Period, the price of Fleetwood common stock fell precipitously, falling to $0.0103 per share on March 10, 2009.
If you bought Fleetwood Enterprises, Inc. securities and would like to obtain information about the Fleetwood Enterprises, Inc. lawsuit, then you are invited to call Kahn Swick & Foti, LLC toll free at (866) 467-1400 extension 100 to speak with an attorney or visit www.ksfcounsel.com.
