Applica Incorporated NYSE: APN

A class action lawsuit has been commenced in the United States District Court for the Southern District of Florida on behalf of purchasers of Applica Incorporated ("Applica" or the "Company") (NYSE:APN) common stock during the period between November 4, 2004 and April 28, 2005 (the "Class Period").

The complaint charges Applica and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Applica engages in the manufacture, marketing, and distribution of small household appliances. The Company markets and distributes kitchen products, home products, pest control products, pet care products, and personal care products.

The Complaint alleges that, throughout the Class Period, defendants issued materially false and misleading statements highlighting the Company's ability to transform its business and become more profitable. As alleged in the Complaint, these statements were materially false and misleading because they failed to disclose and misrepresented the following adverse facts, among others: (a) that the Company was experiencing decreasing demand for its products. In particular, demand for two key products, Tide(TM) Buzz(TM) Ultrasonic Stain Remover and Home Cafe(TM) single cup coffee maker, were not meeting internal expectations; (b) that Applica was materially overstating its net worth by failing to timely write down the value of its inventory which had become obsolete and unsaleable; (c) that Applica was experiencing higher product warranty returns, which it had not appropriately reserved for; (d) that Applica's financial statements issued during the Class Period were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP") and therefore were materially false and misleading; and (e) as a result of the foregoing, there was no reasonable basis for the Company's revenue and earnings guidance.

The Complaint further alleges that, on April 20, 2005, Defendants revealed that the Company would not come near achieving the guidance they had previously sponsored and/or endorsed, that the Company's business was suffering from numerous adverse factors and that the Company was marking down inventory and experiencing increased warranty expenses. Then, on April 28, 2005, Defendants further detailed the impact of these adverse factors on Applica's business. These belated disclosures had an immediate, adverse impact on the price of Applica shares.

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 have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible class action lawsuit. Please fill in our form on the right to submit your complaint and we will have this lawyer review your securities complaint.

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