| Company: | ADVO, Inc. |
| Ticker Symbol: | NYSE: AD |
| Class Period: | July 6, 2006 to August 30, 2006 |
| Date Filed: | Sep-12-06 |
| Lead Plaintiff Deadline: | Nov-12-06 |
| Court: | District, CT |
| Allegations: |
A class action lawsuit has been filed in the United States District Court for the District of Connecticut on behalf of purchasers of ADVO, Inc. ("ADVO") (NYSE:AD) common stock during the period between July 6, 2006 and August 30, 2006 (the "Class Period").
The complaint charges ADVO and certain of its officers and directors with violations of the Securities Exchange Act of 1934. ADVO is a direct mail media company that engages in soliciting and processing printed advertising from retailers, manufacturers, and service companies in the United States and Canada.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results, concealing material adverse problems in ADVO's long-term financial health and intrinsic value. Defendants concealed this information in order to accomplish a merger which the Company had entered into with Valassis Communications, Inc. ("Valassis"), a leading company in marketing services, to create the largest integrated media services provider in the nation. Valassis was acquiring all of ADVO's outstanding common stock in an all cash transaction. As a result of defendants' false statements, investors believed the acquisition would occur, causing ADVO's stock to trade at artificially inflated prices during the Class Period, reaching a high of $36.80 per share in August 2006. Then, on August 30, 2006, Valassis announced that it had filed an action to rescind its merger agreement with ADVO. On this news, the Company's shares fell to $28.59 per share.
According to the complaint, to accomplish the merger, ADVO officers and employees concealed material information, including that: (a) its business had deteriorated so badly that it would never be replaced; (b) its financial internal controls were woefully inadequate; and (c) its business was not as nearly successful as the market and Valassis had been led to believe.
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.
The complaint charges ADVO and certain of its officers and directors with violations of the Securities Exchange Act of 1934. ADVO is a direct mail media company that engages in soliciting and processing printed advertising from retailers, manufacturers, and service companies in the United States and Canada.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results, concealing material adverse problems in ADVO's long-term financial health and intrinsic value. Defendants concealed this information in order to accomplish a merger which the Company had entered into with Valassis Communications, Inc. ("Valassis"), a leading company in marketing services, to create the largest integrated media services provider in the nation. Valassis was acquiring all of ADVO's outstanding common stock in an all cash transaction. As a result of defendants' false statements, investors believed the acquisition would occur, causing ADVO's stock to trade at artificially inflated prices during the Class Period, reaching a high of $36.80 per share in August 2006. Then, on August 30, 2006, Valassis announced that it had filed an action to rescind its merger agreement with ADVO. On this news, the Company's shares fell to $28.59 per share.
According to the complaint, to accomplish the merger, ADVO officers and employees concealed material information, including that: (a) its business had deteriorated so badly that it would never be replaced; (b) its financial internal controls were woefully inadequate; and (c) its business was not as nearly successful as the market and Valassis had been led to believe.
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.
