Rhodia S.A. NYSE: RHA

A class action lawsuit was filed in the United States District Court for the District of New Jersey, against Rhodia S.A. ("Rhodia" or the "Company") (NYSE:RHA), on behalf of purchasers of Rhodia publicly traded securities between April 26, 2001 and March 23, 2004, inclusive (the "Class Period").

The complaint charges alleges that Rhodia violated federal securities laws by issuing false or misleading information. Specifically, defendants overstated Rhodia's financial results by failing to record impairment on a timely basis in order to: (1) protect their executive positions and compensation; (ii) raise EUR 1 billion in Notes in a private placement on May 28, 2003, as well as EUR 290 million in a private placement of Notes with American investors in 2001; and (iii) enhance the value of their personal Rhodia holdings. During the Class Period, defendants knew, but concealed that: (i) Rhodia's ChiRex unit was impaired and had not been written down in a timely fashion; (ii) Rhodia failed to write down deferred tax assets to recoverable values in 2002 and failed to do so until the end of 2003; (iii) Rhodia failed to properly report its outstanding debt; and (iv) Rhodia failed to include disclosures necessary for investors to understand the trends in its business.

On March 23, 2004, it was revealed that French securities regulators were conducting an inquiry into Rhodia's financial reporting. On this news, Rhodia fell to $1.50 per share. Subsequently, it was reported that France's stock market regulator had found that Rhodia had failed to disclose important information in a timely fashion beginning in 2001.

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.