Tuesday, February 07, 2006

Class action lawsuit filed against Jarden

A press release on PR Newswire indicates a class action lawsuit was filed in U. S. District Court for the Southern District of New York "on behalf of all securities purchasers of Jarden Corporation." Jarden owns the former Sunbeam plant in Neosho.
The lawsuit alleges Jarden and some of its officers and directors misled the public by issuing "a series of false and misleading statements to the market artificially inflating the company's stock."
Jarden officials failed to disclose that the Holmes Group, which Jarden bought this year,"had no reasonable way to repeat its performance in 2005 due to the loss of tens of million of dollars in revenue from a deal Holmes had with Procter & Gamble."
On Jan. 12, 2006, Jarden issued a business update saying the profit margins it had anticipated for Holmes were nowhere near what they were supposed to be. "In hindsight, the original forecasts for Holmes provided to us at the time of the acquisition were overoptimistic," the statement said.
After this announcement was made, Jarden's shares fell $3.37 per share or 11.08 percent, according to the lawsuit.

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