Class Actions Lawsuit Newswire
NEW YORK and SEATTLE, Sept. 5, 2007 — Wolf
Haldenstein Adler Freeman & Herz LLP and Keller Rohrback L.L.P. today
filed a class action lawsuit in the United States District Court,
Western District of Washington, on behalf of all persons who purchased
the common stock of Jones Soda Company (“Jones Soda” or the “Company”)
(Nasdaq:JSDA) between the period of November 1, 2006, and August 2,
2007, inclusive (the “Class Period”), against the Company and certain
of its officers and directors, alleging violations under Section 10(b)
of the Securities Exchange Act of 1934 (the “Exchange Act”), 15 U.S.C.
#78j(b), and the rules and regulations promulgated thereunder by the
SEC, including Rule 10b-5, 17 C.F.R. #240.10b-5 (the “Class”).
The Complaint alleges that throughout the Class Period, defendants
issued numerous, positive but false statements to investors and the
market at large that misrepresented the Company’s growth prospects and
ability to penetrate new markets. Defendants further issued extremely
positive statements about the Company’s new distribution and production
agreement with National Beverage Corporation and agreements with
numerous major retailers to garner precious shelf space for the
Company’s products. Defendants stated that each of these agreements was
cemented and that the Company was poised to realize the financial
benefits thereof.
Moreover, Defendant Peter M. von Stolk, the Company’s founder,
President, Chief Executive Officer and a Director issued numerous
statements that led the market to believe that major retailers had
stocked the Company’s sodas on their shelves for sale, or that the
sodas would be stocked on these retailers’ shelves for sale by a date
certain. These statements, however, were false or were issued with such
a degree of severe recklessness to render them actionable.
On August 3, 2007, the Company announced that earnings for the quarter
ended June 30, 2007 were well below Wall Street’s expectations. In
connection with the release (and despite his earlier promises), Mr. van
Stolk said that the Company’s canned products were not on enough store
shelves in time for peak summer sales, which began during the Memorial
Day weekend.
This news caused the Company’s stock to plummet nearly 23 percent in
after-hours trading to $11.70 a share, causing stockholders to suffer
significant damages.
Moreover, as detailed in the Complaint, during an 85-day period this
last spring, Mr. van Stolk and five of the six members of the board
sold huge amounts of their holdings of Jones Soda while touting the
Company’s aggressive expansion plan and new arrangements with major
retailers. The truth of the matter was that the Company’s plan was not
on pace as disclosed. The Company’s beverages were not getting on
shelves in time for the summer sales bump. Costs associated with the
Company’s new “can” were significantly impacting earnings and Mr. van
Stolk falsely portrayed the Company in an overly positive light despite
facts that he knew to the contrary. Indeed, as detailed in the
Complaint, he stated during a conference call with analysts that he saw
major sales data from retailers on a daily basis. Accordingly, he knew
at all relevant times that the Company’s products were not on the
shelves and thus not being sold at a pace that comported with his
public statements concerning the Company’s penetration into the $66
billion carbonated soft drink market.
The case name is styled Benford v. Jones Soda Company, et al. A copy of
the complaint filed in this action is available from the Court, or can
be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at
www.whafh.com or the Keller Rohrback L.L.P. website at
www.krclassaction.com.
If you purchased Jones Soda common stock during the Class Period, you
may request that the Court appoint you as lead plaintiff by Monday,
November 5, 2007.
A lead plaintiff is a representative party that acts on behalf of other
class members in directing the litigation. In order to be appointed
lead plaintiff, the Court must determine that the class member’s claim
is typical of the claims of other class members, and that the class
member will adequately represent the class. Under certain
circumstances, one or more class members may together serve as “lead
plaintiff.” Your ability to share in any recovery is not, however,
affected by the decision whether or not to serve as a lead plaintiff.
You may retain Wolf Haldenstein or Keller Rohrback, or other counsel of
your choice, to serve as your counsel in this action.
Wolf Haldenstein has extensive experience in the prosecution of
securities class actions and derivative litigation in state and federal
trial and appellate courts across the country. The firm has
approximately 70 attorneys in various practice areas, and offices in
Chicago, New York City, San Diego, and West Palm Beach. The reputation
and expertise of this firm in shareholder and other class litigation
has been repeatedly recognized by the courts, which have appointed it
to major positions in complex securities multi-district and
consolidated litigation.
Keller Rohrback L.L.P. is a law firm headquartered in Seattle that has
successfully represented shareholders and consumers in class action
cases for over two decades. Its trial lawyers have obtained judgments
and settlements on behalf of clients in excess of seven billion
dollars.
If you wish to discuss this action or have any questions, please
contact any member of our team: (1) Wolf Haldenstein Adler Freeman &
Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone
at (800) 575-0735 (Gregory M. Nespole, Esq. or Derek Behnke), via
e-mail at classmember@whafh.com, nespole@whafh.com, or visit our
website at www.whafh.com; or (2) Keller Rohrback L.L.P. at 1201 Third
Avenue, Seattle, Washington 98101, by telephone, toll-free at (800)
776-6044 (attorneys Elizabeth Leland or Juli Farris or paralegal
Alizabeth Rasmussen), via e-mail at investor@kellerrohrback.com, or
online at www.krclassaction.com. All e-mail correspondence should make
reference to Jones Soda.
More information on this and other class actions can be found on the
Class Action Newsline at www.primenewswire.com/ca.
