RADNOR, Pa., Sept. 20 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP: Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of Connecticut on behalf of all securities purchasers of ADVO, Inc. (NYSE:AD) ("ADVO" or the "Company") from July 6, 2006 through August 30, 2006, inclusive (the "Class Period").
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 Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at .
The Complaint charges ADVO and certain of its officers and directors with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that ADVO misrepresented the success of its business and its prospects for future success; (2) that the Company did not possess the business prospects to meet its financial projections; (3) that the Company lacked adequate internal controls; and (4) that, as a result of the above, ADVO's financial statements were materially false and misleading at all relevant times.
On August 30, 2006, after the market closed, ADVO shareholders were stunned when Valassis Communications, Inc. ("Valassis") announced that it had sued ADVO in the Delaware Chancery Court to rescind its $1.3 billion merger agreement with ADVO based on fraud and material adverse changes. Valassis also reported that it had alleged that ADVO management materially misrepresented the financial health of the Company and failed to reveal internal control deficiencies. On this news, shares of ADVO plummeted to as low as $25.92 per share, before closing on August 31, 2006 at $28.59 per share, a loss of $8.21, or 22.3 percent, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/.
If you are a member of the class described above, you may, not later than November 10, 2006, move the Court to serve as lead plaintiff of the class, if you so choose. 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 Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin & Barroway, LLP
Darren J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll-free) or 1-610-667-7706
or by e-mail at DATASOURCE: Schiffrin & Barroway, LLP CONTACT: Darren J. Check, Esq. or Richard A. Maniskas, Esq., both of Schiffrin & Barroway, LLP, toll-free, +1-888-299-7706, or +1-610-667-7706, or Web site: http://www.sbclasslaw.com/
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