| Company: | Salton, Inc. |
| Ticker Symbol: | NASD: SFP |
| Class Period: | November 11, 2002 to May 11, 2004 |
| Court: | Northern District, IL |
| Date Filed: | May-24-04 |
| Lead Plaintiff Deadline: | Jul-20-04 |
| Allegations: |
A class action lawsuit was filed on May 20, 2004, on behalf of purchasers of the securities of Salton, Inc. ("Salton" or the "Company") (NYSE: SFP) between November 11, 2002 and May 11, 2004, inclusive, (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act").
The action is pending in the United States District Court for the Northern District of Illinois, Eastern Division, against defendants Salton, Leonhard Dreimann (CEO, Director) and David M. Mulder (Chief Administrative and Senior Financial Officer).
The complaint charges defendants with violations of the Exchange Act. More specifically, the complaint alleges that Salton's Class Period press releases and quarterly and annual reports filed with the SEC were materially false and misleading because they failed to disclose the following adverse factors (among others particularized in the complaint) that were having a materially negative impact on Salton's business: (i) at the inception of the Class Period, the Company's main revenue and growth driver, the Foreman grill, had saturated the market such that it was entirely foreseeable that sales had stalled and would continue to stall and/or could not be counted on for continued and sustainable revenues in the near term; (ii) without the Company's illegal price support scheme, ended immediately prior to the Class Period by the aggressive efforts of many State Attorneys General, Salton could not maintain its market position or profit margin; and (iii) throughout much of the Class Period, Salton was either in violation of the Company's debt agreements or was foreseeably going to be in breach of those agreements. On May 10, 2004, after the close of trading, defendants issued a release announcing that Salton was performing much worse than the Company had led investors to believe, that the Company was in violation of its senior secured revolving credit facility for the month ended March 27, 2004, and that defendants anticipated near-term non-compliance with certain financial covenants. In response to this announcement, the price of Salton common stock plummeted, from $6.69 per share on May 10, 2004, to $3.35 per share on May 11, 2004, a one day drop of 50% on unusually large 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 action is pending in the United States District Court for the Northern District of Illinois, Eastern Division, against defendants Salton, Leonhard Dreimann (CEO, Director) and David M. Mulder (Chief Administrative and Senior Financial Officer).
The complaint charges defendants with violations of the Exchange Act. More specifically, the complaint alleges that Salton's Class Period press releases and quarterly and annual reports filed with the SEC were materially false and misleading because they failed to disclose the following adverse factors (among others particularized in the complaint) that were having a materially negative impact on Salton's business: (i) at the inception of the Class Period, the Company's main revenue and growth driver, the Foreman grill, had saturated the market such that it was entirely foreseeable that sales had stalled and would continue to stall and/or could not be counted on for continued and sustainable revenues in the near term; (ii) without the Company's illegal price support scheme, ended immediately prior to the Class Period by the aggressive efforts of many State Attorneys General, Salton could not maintain its market position or profit margin; and (iii) throughout much of the Class Period, Salton was either in violation of the Company's debt agreements or was foreseeably going to be in breach of those agreements. On May 10, 2004, after the close of trading, defendants issued a release announcing that Salton was performing much worse than the Company had led investors to believe, that the Company was in violation of its senior secured revolving credit facility for the month ended March 27, 2004, and that defendants anticipated near-term non-compliance with certain financial covenants. In response to this announcement, the price of Salton common stock plummeted, from $6.69 per share on May 10, 2004, to $3.35 per share on May 11, 2004, a one day drop of 50% on unusually large 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.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
