SOURCE: Schneider & Wallace

September 01, 2005 17:00 ET

Schneider & Wallace Seeks to Recover Losses for Investors Who Purchased American Italian Pasta Company Securities (NYSE: PLB)

SAN FRANCISCO, CA -- (MARKET WIRE) -- September 1, 2005 -- Schneider & Wallace (http://www.schneiderwallace.com) is representing investors in a class action suit in the United States District Court for the Western District of Missouri against American Italian Pasta Company (NYSE: PLB) and certain of its officers and directors, on behalf of all persons or entities who purchased the publicly traded securities of AIPC between October 25, 2000 and August 9, 2005 (the "Class Period").

The complaint alleges that during the Class Period, defendants violated Sections 10(b) and 20(a) of the Securities and Exchange Act of 1934 by publicly issuing a series of false and misleading statements regarding the Company's financial condition, thus causing AIPC's securities to trade at artificially inflated levels. On August 9, 2005, after the close of trading, AIPC disclosed that it was "delaying the release of its full financial results for the third fiscal quarter ended July 1, 2005, and is also delaying the filing of its third quarter Form 10-Q with the Securities and Exchange Commission (SEC)." The Company stated that "it will not achieve in fiscal year 2005 the expected range of margin performance, overall profitability and free cash flow as set forth in the Company's earnings release on April 27, 2005." AIPC also disclosed that the Company's "Audit Committee has recently commenced an internal investigation, undertaken at the Committee's own initiative, of certain matters including: certain accounting procedures and practices including those relating to material weaknesses in internal controls identified by the Company… financial statement adjustments… and the circumstances surrounding such adjustments; and, certain transactions and possible past accounting errors and their causes." The Company "indicated that the investigation relates to transactions and other matters occurring as early as the Company's 2000 fiscal year. The internal investigation has not yet been completed and the Company indicated that financial statement adjustments might be necessary in addition to those outlined in this release. Until the internal investigation is completed by the Audit Committee and any financial statement adjustments and their causes are determined, the Company's third quarter results and any impact on prior period results cannot be finalized." In addition, the Company stated "that in late 2004 and early 2005, it received inquiries from the Philadelphia and New York Stock Exchanges concerning trading activity in the Company's stock, by persons outside of the Company, during time periods surrounding certain of the Company's public announcements." The Company stated that "[s]ome of the issues under discussion with the SEC staff relate" to "financial statement adjustments" by the Company.

On August 10, 2005, the following trading day, shares of AIPC declined from $20.94 to $13.28 per share, a decline of approximately 37%, on unusually heavy volume.

If you are a member of the proposed Class, you may move the court no later October 11, 2005 to serve as a lead plaintiff for the Class. You need not seek to become a lead plaintiff in order to share in any possible recovery. Plaintiff seeks to recover damages on behalf of the proposed Class and is represented by Schneider & Wallace. For more information about Schneider & Wallace, or to review a copy of the complaint filed in this action, you may visit our website at http://www.schneiderwallace.com/Stock-Investigations/American-Italian-Pasta-Investigation.htm If you have questions about this Notice, the action and /or the lead plaintiff motion process, please e-mail info@schneiderwallace.com or contact:

Contact Information

  • Todd Schneider
    Schneider & Wallace
    180 Montgomery Street, Suite 2000
    San Francisco, California 94104
    Telephone: (415) 421-7100
    Facsimile: (415) 421-7105
    TTY: (415) 421-1655