Anchor Glass Container Corporation NASD: AGCC

Company: Anchor Glass Container Corporation
Ticker Symbol: NASD: AGCC
Class Period: September 25, 2003 to November 4, 2004
Date Filed: Dec-14-04
Lead Plaintiff Deadline: Jan-28-05
Court: Middle District, FL
A class action lawsuit was filed on November 24, 2004, on behalf of purchasers of the securities of Anchor Glass Container Corporation ("Anchor" or "the Company") (Nasdaq: AGCC) during the period of September 25, 2003 through and including November 4, 2004 (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act").

The action was filed in the Middle District of Florida (Tampa division) against defendants Anchor Glass, Richard M. Deneau (former CEO) and Darrin J. Campbell (CFO). According to the complaint, defendants violated sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5, by issuing a series of material misrepresentations to the market during the Class Period. Specifically, the complaint alleges that Anchor went public through an Initial Public Offering ("IPO") on September 25, 2003 and that throughout the Class Period, defendants touted Anchor's increasing sales and profitability causing the stock price to soar to over $17 per share. Insiders cashed out both in the IPO, where their personal "Series C" preferred stock was redeemed for cash, and after, when defendants and other Anchor insiders sold over $4.4 million worth of stock at artificially inflated prices.

The Complaint alleges that the statements issued by defendants during the Class Period were materially false and misleading because: (a) Anchor's production far exceeded demand and the Company had an excess of built-up inventory during the Class Period, resulting in the forced closure of the Connellsville facility; (b) Anchor had flooded the market with inventory during the Class Period which caused the Company to "curtail production selectively during the fourth quarter" to lower these inventory levels and align production with customer requirements; and c) one of the Company's main production facilities, the Connellsville facility, was materially impaired during the Class Period resulting in a belated charge of at least $45 million.

On November 5, 2004, before the market opened, defendants shocked the market by announcing a much greater than expected net loss, a major company-wide revamping, including the closure of a major container facility, the suspension of the quarterly dividend, and the sudden resignation of CEO Richard Deneau. In response to the unexpected news, Anchor stock plummeted by over 25%, on extraordinarily high volumes of over 2.6 million shares traded - vastly higher than the average trading volumes of approximately 130,000 shares. The news also prompted analyst downgrades, including a downgrade to "sell" issued by Merrill Lynch, noting that "the company's issues raise questions about Anchor Glass management's intermediate-term credibility..."

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

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If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.

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