Coughlin Stoia Geller Rudman & Robbins LLP (“Coughlin
Stoia”) ( http://www.csgrr.com/cases/sonoco/)
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 South Carolina on behalf of purchasers of Sonoco Products
Co. (“Sonoco Products”
or the “Company”)
( SON) common stock during the period between February 7, 2007 and
September 18, 2007 (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, Samuel H. Rudman
or David A. Rosenfeld of Coughlin Stoia at 800/449-4900 or 619/231-1058,
or via e-mail at djr@csgrr.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.csgrr.com/cases/sonoco/.
Any member of the putative 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 Sonoco Products and certain of its officers and
directors with violations of the Securities Exchange Act of 1934. Sonoco
Products manufactures industrial and consumer packaging products, and
packaging services primarily in the United States, Europe, and Canada.
The complaint alleges that, during the Class Period, defendants issued a
series of materially false and misleading statements concerning the
Company’s financial performance and
prospects. Specifically, the complaint alleges that these statements
were materially false and misleading because defendants failed to
disclose and/or misrepresented: (i) that the Company was losing market
share to its competitors; (ii) that the Company was having operational
difficulties in implementing its next generation of products; (iii) that
the Company was experiencing weaker sales in its Engineered Carriers and
Paper and Consumer Packaging segments, especially in North America; (iv)
that the Company was distracted by the loss of a bid on a large
contract, which resulted in decreased sales and price concessions on
current contracts; (v) that the Company was having a difficult time in
moving its old inventory; and (vi) that as a result of the forgoing, the
Company had no reasonable basis for its 2007 earnings guidance.
On July 20, 2007, the Company announced its financial results for the
second quarter of 2007, the period ended July 1, 2007. For the quarter,
the Company reported earnings of $0.41 per diluted share, below analysts’
expectations. In response to this announcement, shares of the Company’s
common stock fell $6.30 per share, or over 14%, to close at $38.00 per
share, on heavy trading volume.
On September 18, 2007, the Company announced that it was reducing its
third quarter 2007 base earnings estimate to a range of $0.55 to $0.58
per diluted share. Upon this news, shares of the Company’s
stock fell $2.42 per share, or over 7%, to close at $30.78 per share, on
heavy trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers of Sonoco
common stock during the Class Period (the “Class”).
The plaintiff is represented by Coughlin Stoia, which has expertise in
prosecuting investor class actions and extensive experience in actions
involving financial fraud.
Coughlin Stoia, a 190-lawyer firm with offices in San Diego, San
Francisco, Los Angeles, New York, Boca Raton, Washington, D.C.,
Philadelphia and Atlanta, 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.
The Coughlin Stoia Web site ( http://www.csgrr.com)
has more information about the firm.
