SOURCE: Johnson & Perkinson

March 06, 2008 15:27 ET

Johnson & Perkinson Announces Commencement of Class Action Litigation Naming SunOpta, Inc.

SOUTH BURLINGTON, VT--(Marketwire - March 6, 2008) - Johnson & Perkinson hereby announces the commencement of a class action lawsuit naming SunOpta Inc. ("SunOpta" or "the Company") (NASDAQ: STKL). The action, docket numbered 08-CV-1844, was filed in the United States District Court for the Southern District of New York. Individuals, families, trusts or other entities that purchased SunOpta common stock between May 8, 2007 and January 25, 2008, inclusive, have the opportunity to participate as Lead Plaintiffs in the currently pending class action litigation against the Company. To do so, you must apply to serve in that capacity by March 28, 2008.

Johnson & Perkinson, a litigation boutique law firm based in South Burlington, Vermont, has extensive experience prosecuting investor class actions and actions involving financial fraud. Attorneys Johnson and Perkinson are both former employees of the Securities and Exchange Commission. Dedicated to maximizing shareholder return, members of Johnson & Perkinson have prosecuted complex class actions alleging securities or consumer fraud/deception on behalf of investors/consumers against numerous public companies since 1985, resulting in the recovery of many hundreds of millions of dollars, and have been singled out for excellence by various courts. The firm is litigating, or has recently resolved litigation, as Lead or Co-Lead Counsel in securities class actions against Xerox, Priceline, Wireless Facilities, i2 and Xchange, and serves on the Executive Committee in the Global Crossing case.

The pending Complaint alleges that during the Class Period, defendants made material misrepresentation and omissions concerning SunOpta's financial condition and business prospects. Specifically, defendants allegedly and improperly overstated SunOpta's reported profitability during the Class Period and materially misrepresented that SunOpta's financial results were prepared in accordance with Generally Accepted Accounting Principles ("GAAP"). In addition, defendants allegedly failed to disclose that SunOpta lacked adequate internal and financial controls. Defendants were apparently motivated to engage in the alleged wrongdoing so that SunOpta insiders, including certain defendants, could sell more than $60 million of their personally held SunOpta stock at artificially inflated prices.

On January 24, 2008, after the market closed, SunOpta lowered its earnings guidance for the year-ending December 31, 2007 to between $0.12 to $0.14 per diluted share, from previous guidance of $0.35 to $0.40 per share, as a result of an anticipated $12 million to $14 million write-down and provisions. In addition, SunOpta revealed plans to restate its financial results from prior quarters. SunOpta explained that it needed to write-down inventories within one of its business divisions by approximately $9 million to $11 million and, further, that it had provisioned approximately $3 million related to difficulties in collecting payments for services and equipment provided to a customer. As a result of the foregoing, SunOpta was unable to provide guidance for fiscal 2008. In reaction to this news, the price of SunOpta common stock fell $3.51 per share, or 36.72 percent, from its closing price of $9.56 on January 24, 2008, to close on January 25, 2008 at $6.05 per share.

If you wish to discuss this action or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Johnson & Perkinson attorneys James F. Conway, III or Eben F. Duval toll free at 1-888-459-7855; via email at; through our website at; or by mail at Johnson & Perkinson, 1690 Williston Road, P.O. Box 2305, South Burlington, Vermont 05403. Attorneys at Johnson & Perkinson can help you decide if seeking appointment as a Lead Plaintiff is right for you. Your ability to share in any recovery is not affected by your decision to not seek appointment as a Lead Plaintiff.

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