Cauley Geller Announces Class Action Lawsuit Against Collins & Aikman Corp. On Behalf of Investors

NEW YORK, March 31 -- The Law Firm of Cauley Geller Bowman Coates & Rudman, LLP announced today that a class action lawsuit has been filed in the United States District Court for the Eastern District of Michigan on behalf of purchasers of Collins & Aikman Corp. ("Collins & Aikman" or the "Company") publicly traded securities during the period between August 7, 2001 and August 2, 2002, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.cauleygeller.com/show_case.asp?ccode=104&pcode=10&pp=4 .

The complaint charges that during the Class Period, the defendants issued and/or failed to correct false and misleading financial statements and press releases concerning the Company's publicly reported revenues and earnings directed to the investing public.

On July 5, 2001 the Company announced the acquisition of the Becker Group LLC ("Becker"). This was the first step in a comprehensive yet poorly managed merger and acquisition plan to transform the company into a 'new' Collins & Aikman and a 'Mega Tier 2' supplier for the auto industry. On August 7, 2001, Collins & Aikman announced that it had signed a definitive agreement to acquire Textron Automotive Company's Trim Division ('TAC-Trim"), one of the world's largest suppliers of fully integrated cockpits, and a major automotive plastic parts manufacturer.

In addition by August 20, 2001, the Company had in place a definitive agreement for the acquisition of the automotive fabric operations of Joan Fabrics ("Joan") for all of the operating assets in Joan's affiliated yarn dying operation. Throughout the Class Period the defendants continually claimed that the merger activity would increase savings on the purchase of consolidated raw materials, consolidate management, research and design, engineering functions, and increase efficiency of manufacturing facilities. The Company financed the acquisitions through an ill fated strategy based on cash, the issuance of millions of shares of Collins & Aikman stock, debt restructuring and other creative financing methods.

However as the Class Period progressed, the negative and cumulative effect of the merger agreements began to adversely impact the Company's declining revenue. On August 5, 2002, the Company issued a press release where it reported that due to the accounting impact of the Company's previously disclosed repurchase of $133 million of preferred stock (tied into the 2001 merger activity), there was a non-cash charge to shareholder's equity of $36.3 million ($.52 per share). As a result of this charge the Company reported a net loss available to common shareholders of $20.3 million, or $.29 per diluted share.

If you bought Collins & Aikman publicly traded securities between August 7, 2001 and August 2, 2002, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than May 23, 2003. If you are a member of this class, you can join this class action online at http://cauleygeller.com/template8.asp?pcode=6&pp=1 . Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller or other counsel of their choice, or may choose to do nothing and remain an absent class member.

Cauley Geller is a national law firm that represents investors and consumers in class action and corporate governance litigation. It is one of the country's premiere firms in the area of securities fraud, with in-house finance and forensic accounting specialists and extensive trial experience. Since its founding, Cauley Geller has recovered in excess of two billion dollars on behalf of aggrieved shareholders. The firm maintains offices in Boca Raton, Little Rock and New York.

If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.cauleygeller.com .