Lerach Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against CSK Auto Corporation
SAN DIEGO--June 9, 2006--Lerach Coughlin Stoia Geller Rudman & Robbins LLP ("Lerach Coughlin") (http://www.lerachlaw.com/cases/cskauto/) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the District of Arizona on behalf of purchasers of CSK Auto Corporation ("CSK Auto") common stock during the period between September 2, 2004 and March 24, 2006 (the "Class Period").If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach or Darren Robbins of Lerach Coughlin at 800/449-4900 or 619/231-1058, or via e-mail at wsl@lerachlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.lerachlaw.com/cases/cskauto/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges CSK Auto and certain of its officers and directors with violations of the Securities Exchange Act of 1934. CSK Auto operates as a specialty retailer of automotive aftermarket parts and accessories in the United States.
The complaint alleges that during the Class Period, defendants issued false statements about CSK Auto's earnings, assets and business prospects causing the Company's stock to trade at artificially inflated levels. While the Company's stock was artificially inflated due to defendants' false statements, certain officers and directors sold 75,106 shares of their CSK Auto stock for proceeds of $1.1 million.
Then on March 27, 2006, before the market opened, the Company issued a press release announcing that it would postpone the release of its fourth quarter and fiscal 2005 financial results. The postponement was necessary to provide adequate time for the Company to conduct a thorough review of certain accounting errors and irregularities discovered in the course of its ongoing assessment of internal control over financial reporting and an internal audit. On this news, CSK Auto stock dropped $1.26 to $14.64 per share, after hitting a low of $14.40 per share.
According to the complaint, the true facts, which were concealed by defendants during the Class Period, were as follows: (a) CSK's financial statements were unreliable and its internal controls were inadequate; and (b) the Company's published financial statements violated Generally Accepted Accounting Principles.
Plaintiff seeks to recover damages on behalf of all purchasers of CSK Auto common stock during the Class Period (the "Class"). The plaintiff is represented by Lerach Coughlin, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Lerach Coughlin, a 180-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston, Philadelphia and Seattle, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Lerach Coughlin lawyers have been responsible for more than $20 billion in aggregate recoveries. The Lerach Coughlin Web site (http://www.lerachlaw.com) has more information about the firm.