| Company: | Corn Products International, Inc. |
| Ticker Symbol: | NYSE: CPO |
| Class Period: | January 25, 2005 and April 4, 2005 |
| Date Filed: | May-20-05 |
| Lead Plaintiff Deadline: | Jul-18-05 |
| Court: | Northern District, IL |
| Allegations: |
A class action lawsuit has been commenced in the United States District Court for the Northern District of Illinois on behalf of purchasers of Corn Products International, Inc. ("Corn Products") (NYSE:CPO) securities during the period between January 25, 2005 and April 4, 2005 (the "Class Period").
The complaint charges Corn Products and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Corn Products manufactures and sells starches, liquid sweeteners and other ingredients to food and industrial customers in over 60 industries around the world.
The Complaint alleges that, during the Class Period, defendants issued materially false and misleading statements concerning the Company's future prospects. Specifically, the complaint alleges that these statements were materially false and misleading because, at the time that these statements were made, defendants knew, but failed to disclose and/or misrepresented: (i) that the Company was experiencing manufacturing problems at certain of its facilities that were causing its expenses to rise dramatically above internally forecasted levels. These problems caused certain of the Company's processing facilities to close and/or slowdown production thereby raising expenses; (ii) that the Company had contracted for corn in Canada in the late Fall of 2004 at prices higher than present prevailing prices, thereby forcing the Company to purchase corn at above-market prices and further eroding the Company's profit margins. In other words, the Company's hedging strategy related to its Canadian corn purchases was then negatively impacting its financial results and would continue to do so for the next year; and (iii) given the foregoing, Defendants lacked a reasonable basis for their positive statements concerning the Company and its earnings and prospects.
On April 5, 2005, before the market opened, Corn Products issued a press release announcing that it expected first quarter earnings to decline by 35 to 40 percent from the first quarter of 2004, due primarily to the timing of corn purchases, increased expenses, and manufacturing expense problems. In response to this announcement, the price of Corn Products common stock declined precipitously, falling from $25.86 per share to $20.98 per share, on extremely heavy trading volume.
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 Corn Products and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Corn Products manufactures and sells starches, liquid sweeteners and other ingredients to food and industrial customers in over 60 industries around the world.
The Complaint alleges that, during the Class Period, defendants issued materially false and misleading statements concerning the Company's future prospects. Specifically, the complaint alleges that these statements were materially false and misleading because, at the time that these statements were made, defendants knew, but failed to disclose and/or misrepresented: (i) that the Company was experiencing manufacturing problems at certain of its facilities that were causing its expenses to rise dramatically above internally forecasted levels. These problems caused certain of the Company's processing facilities to close and/or slowdown production thereby raising expenses; (ii) that the Company had contracted for corn in Canada in the late Fall of 2004 at prices higher than present prevailing prices, thereby forcing the Company to purchase corn at above-market prices and further eroding the Company's profit margins. In other words, the Company's hedging strategy related to its Canadian corn purchases was then negatively impacting its financial results and would continue to do so for the next year; and (iii) given the foregoing, Defendants lacked a reasonable basis for their positive statements concerning the Company and its earnings and prospects.
On April 5, 2005, before the market opened, Corn Products issued a press release announcing that it expected first quarter earnings to decline by 35 to 40 percent from the first quarter of 2004, due primarily to the timing of corn purchases, increased expenses, and manufacturing expense problems. In response to this announcement, the price of Corn Products common stock declined precipitously, falling from $25.86 per share to $20.98 per share, on extremely heavy trading volume.
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.
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.
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