Tower Automotive
Vianale & Vianale LLP Files Securities Fraud Class Action on Behalf of Tower Automotive Securities Purchasers
BOCA RATON, FL (April 04, 2005 5:46 PM) — The law firm of Vianale & Vianale LLP commenced a securities fraud class action lawsuit on April 4, 2005, in Manhattan federal court on behalf of all purchasers of the securities of Tower Automotive, Inc. (”Tower” or the “Company”) (OTC: TWRAQ) between August 14, 2000 and February 1, 2005, inclusive. View the complaint on Vianale & Vianale’s website: http://www.vianalelaw.com, or call toll-free 888-657-9960.
The complaint alleges that during the class period, defendants violated the federal securities laws by falsely telling investors in Tower’s SEC filings that the Company’s long-term supply contracts with auto makers might be subject to price decreases over the life of the contracts, when in fact, defendants then knew that Tower was selling product under these contracts at below cost, as CEO Ligocki conceded after Tower filed for bankruptcy on February 2, 2005. Defendants also knew that Tower was unable to achieve sufficient cost savings to offset the supply-contract price decreases, thus jeopardizing the Company’s future working capital and profitability. In particular, defendants knew or recklessly ignored that Tower had failed to obtain its claimed cost savings from Tower’s numerous corporate acquisitions, as Ligocki conceded post-bankruptcy: “This company has been run where each plant acted like its own $100 million to $300 million unit….All these plants should have been integrated earlier as they were bought.”
Meanwhile, Tower insiders profited through their ownership interests in Hidden Creek Industries (”Hidden Creek”), a related party, and J.L. French Automotive Castings, Inc. (”J.L. French”), an undisclosed related party. Tower paid substantial fees to Hidden Creek and lent money to J.L. French — loans Tower later was forced to write off. Burdened by debt, unable to reap real cost savings from acquisitions, and losing money on long-term supply contracts, defendants hid Tower’s true financial crisis and falsely assured investors of Tower’s liquidity. On January 20, 2005, however, Tower announced that it faced “significant challenges in meeting ongoing liquidity requirements.” On February 2, 2005, the final shoe fell with Tower’s announced bankruptcy.
If you bought Tower securities between August 14, 2000, to February 1, 2005, inclusive, you may, no later than April 5, 2005, move the Court to appoint you as lead plaintiff, a representative party who acts on behalf of the other class members in directing the litigation. The Court will determine whether the proposed lead plaintiff’s claim is typical, and whether the class member will adequately represent the class. Your ability to share in any recovery is not affected by whether or not you serve as a lead plaintiff. You may retain Vianale & Vianale LLP, or other counsel of your choice.
Vianale & Vianale LLP is active in major class action litigations pending in federal and state courts. Visit our web site (http://www.vianalelaw.com) for more information about the firm.
To discuss this action with us, or if you have any questions about this notice or your rights with regard to this case, please contact:
Kenneth J. Vianale, Esq.
5355 Town Center Road
Suite 801
Boca Raton, Florida 33486
561-391-4900
e-mail: info@vianalelaw.com