SOURCE: Stull, Stull & Brody

September 12, 2005 18:02 ET

Stull, Stull & Brody Announces Class Action Against American Italian Pasta Company

NEW YORK, NY -- (MARKET WIRE) -- September 12, 2005 -- Notice is hereby given that a class action has been commenced in the United States District Court for the Western District of Missouri on behalf of purchasers of American Italian Pasta Company ("AIPC") (NYSE: PLB) common stock during the period between October 4, 2000 and August 9, 2005 (the "Class Period").

Stull, Stull & Brody has substantial experience representing employees who suffered losses from purchases of their employer's stock in their 401(k) plans. If you bought AIPC's stock through your AIPC retirement account and have information or would like to learn more about these claims, please contact us.

The complaint charges AIPC and certain of its officers and directors with violations of the Securities Exchange Act of 1934. AIPC engages in the production and marketing of dry pasta in North America. The complaint alleges that during the Class Period, defendants caused AIPC's shares to trade at artificially inflated levels by issuing a series of materially false and misleading statements regarding the Company's financial statements, business and prospects. This caused the Company stock to trade as high as $51.78 per share during the Class Period and allowed defendants to sell 551,888 shares of their APIC stock at artificially inflated prices for proceeds of $19.4 million. Then, on August 9, 2005, the Company issued a press release announcing 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 its Audit Committee is conducting an internal investigation of certain accounting procedures and practices and certain other matters. The Company also outlined impairment charges and other financial statement adjustments that will be recorded and provided an overview of its business results for the third quarter." On this news, AIPC's stock collapsed to as low as $13.10 per share before closing at $13.28 per share on volume of 4.7 million shares. According to the complaint, the true facts, which were known by each of the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company lacked requisite internal controls, and, as a result, the Company's projections and reported results were based upon defective assumptions and/or manipulated facts; (b) contrary to defendants' claims of fiscal 2005 profitability, the Company was actually on track to report losses; (c) the Company lacked the necessary personnel to issue accurate financial reports and projections; (d) the Company's financial statements were presented in violation of General Accepted Accounting Principals; and (e) as a result of the above, the Company's projections for fiscal year 2005 were grossly inflated.

If you purchased AIPC during the Class Period, you may request that the Court appoint you as lead plaintiff by October 11, 2005. 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 the class member's claim is typical of the claims of other class members, and that the class member 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, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in both New York and Los Angeles.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by e-mail at SSBNY@aol.com, by calling toll-free 1-800-337-4983, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com.

Contact Information