| Company: | Constar International, Inc. |
| Ticker Symbol: | NASD: CNST |
| Class Period: | November 2002 Initial Public Offering |
| Court: | Eastern District, PA |
| Date Filed: | Sep-05-03 |
| Lead Plaintiff Deadline: | Nov-05-03 |
| Allegations: |
The complaint charges Constar and certain of its officers and directors with violations of the Securities Act of 1933. Constar is a wholly owned subsidiary of Crown Cork & Seal Co. ("Crown"). Crown is a leading supplier of packaging products to consumer marketing companies around the world. In November 2002, Constar completed an IPO of 10.5 million shares of stock pursuant to a Prospectus/Registration Statement. The IPO, which was solely comprised of shares sold by Crown, was priced at $12 per share for total proceeds of $117 million after underwriting discounts and commissions. The complaint alleges that the Prospectus/Registration Statement was materially false and misleading and failed to disclose, among other things, that (1) the Company was then experiencing an unseasonably low demand in its carbonated soft drink bottle business; (2) the Company was then experiencing an adverse impact in the Company's revenue stream due to the "pass-through" of lower resin costs; (3) the Company was then experiencing an adverse trend in the Company's conventional PET container shipments; (4) the Company's management had changed its focus just prior to the IPO and purposely reduced its higher volume preforms, causing a fourth quarter revenue shortfall; and (5) the Company's goodwill was impaired, and defendants failed to timely take an impairment charge.
As this adverse information was disclosed, the Company's shares eventually plummeted to $5.00 per share. Public investors who purchased shares traceable to the IPO based on Constar's representations, paying $12 per share for Constar stock, have suffered tens of millions of dollars in damages.
If you acquired the securities of Constar International, Inc. during the Class Period you may, no later than November 4, 2003, 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.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
