Coca-Cola Enterprises, Inc. NYSE: CCE

A securities fraud class action complaint has been filed in the United States District Court for the Northern District of Georgia against Coca-Cola Enterprises, Inc. ("CCE"), Lowry F. Kline, John R. Alm, Patrick J. Mannelly, Rick L. Engum, E. Liston Bishop, III, G. David Van Houten, Jr. and Summerfield K. Johnston, Jr. The case was filed on behalf of all persons who purchased or otherwise acquired CCE stock between October 15, 2003 and July 28, 2004 (the "Class Period") and were damaged thereby. The case is pending before the Honorable Thomas W. Thrash and is entitled Argento Trading Company, L.P. v. Coca-Cola Enterprises, Inc. et al., No. 1:06-cv-00275 (TWT). A copy of the complaint can be obtained from the office of the Clerk of the United States District Court, Northern District of Georgia, 75 Spring Street, S.W., Atlanta, Georgia 30303.

The Complaint alleges that the Defendants violated Sections 10(b), 20(a) and 20A of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, by failing to disclose to the investing public that CCE had a longstanding and systemic practice of channel stuffing -- forcing extra product onto its customers to boost revenue. CCE's reported financial results and future earnings prospects were materially misleading without disclosure about CCE's channel stuffing practices and how those practices affected CCE's financial condition. The complaint also alleges that CCE's channel stuffing resulted in the improper recognition of revenue in violation of GAAP.

While defendants were misrepresenting CCE's financial condition, and CCE's stock price climbed through the Class Period, the individual defendants engaged in substantial insider trading. For example, Defendant Johnston sold over $172 million worth of his CCE stock, representing 19.52% of his holdings or 6,481,082 shares. Defendant Mannelly sold approximately 372,396 shares of his CCE common stock, with proceeds totaling approximately $9,353,964, and Defendant Van Houten sold approximately 225,953 shares of CCE common stock, for proceeds totaling approximately $6,123,757. Other individual defendants sold substantial amounts of CCE stock as well.

On July 29, 2004, CCE made a partial corrective disclosure regarding CCE's true financial condition and diminished future earnings prospects. Reacting to CCE's disclosures, and the individual defendants' insider trading activities, investors hammered CCE's stock price on record trading volumes. Thus, by the close of business on July 29, CCE's stock price fell by approximately 25% or $5 per share, erasing nearly $3.1 billion of CCE's then $12.5 billion market capitalization.

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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