SOURCE: Stull, Stull & Brody

September 01, 2005 18:53 ET

Stull, Stull & Brody Announces Class Action Against Prestige Brands Holdings, Inc.

NEW YORK, NY -- (MARKET WIRE) -- September 1, 2005 -- Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York, on behalf of all persons who purchased the common stock of Prestige Brands Holdings, Inc. ("Prestige Brands " or the "Company") (NYSE: PBH) pursuant or traceable to Prestige Brands' initial public offering on or about February 9, 2005 (the "IPO") through July 27, 2005, seeking to pursue remedies under the Securities Act of 1933 (the "Securities Act"), against Prestige Brands, GTCR Golder Rauner, LLC, Peter C. Mann, Peter J. Anderson, David A. Donnini, Vincent J. Hemmer, Merrill Lynch, Pierce, Fenner & Smith Inc., Goldman, Sachs & Co., and J.P. Morgan Securities Inc.

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 Prestige Brands stock through your Prestige Brands retirement account and have information or would like to learn more about these claims, please contact us.

The complaint alleges that the prospectus (the "Prospectus") filed with the Securities and Exchange Commission ("SEC") in connection with the IPO of Prestige Brands common stock, which took place on or about February 9, 2005, was materially false and misleading.

Specifically, the complaint alleges that Prestige Brands owns and markets a portfolio of brand name products that primarily include household cleaning products, personal care products and over-the-counter consumer healthcare products, including Compound W® wart remover, Chloraseptic® sore-throat relief products, Cutex® nail polish remover, Comet® and Spic & Span® household cleaners. According to the complaint, the Prospectus filed with the SEC in connection with the IPO was false and misleading because it failed to disclose that the demand for the Company's products was declining, contrary to defendants' representations that the Company was well positioned to compete in "niche" product categories and that it had a diverse portfolio of products that would provide multiple sources of growth. In addition, the Prospectus failed to disclose that the Company intended to withdraw certain of its Comet brand housecleaning products from the market, thereby further eroding the Company's revenues and market share. As a result of the foregoing, defendants' positive statements and projections concerning the Company's financial condition and prospects lacked any reasonable basis in fact.

On July 27, 2005, after the market had closed, the Company reported its financial results for the quarter ended June 30, 2005. The Company reported that it experienced sales declines in each of its three business segments. In addition, the Company lowered its guidance for the remainder of fiscal 2005, stating that "revenue and earnings growth in the current year will fall well below our original expectations," with sales and earnings flat or slightly lower. In reaction to this news, shares of Prestige Brands fell over 40%, to a close of $11.90 per share on July 28, 2005, down $8.00 per share compared with the close of $20.04 per share the prior day.

If you acquired Prestige Brands common stock pursuant or traceable to the Company's IPO on or about February 9, 2005 through July 27, 2005, you may, no later than October 3, 2005, request the Court appoint you as lead plaintiff. 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 not yet filed a complaint 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 or 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.

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