HARTFORD, Conn., June 30, 2008 (LAWFUEL) — The law firm of
Schatz Nobel Izard P.C., which has significant experience representing
investors in prosecuting claims of securities fraud, announces that a
lawsuit seeking class action status has been filed in the United States
District Court for the District of South Carolina on behalf of all
those who purchased the common stock of Sonoco Products Co. (“Sonoco”
or the “Company”) (NYSE:SON) between February 7, 2007 and September 18,
2007, inclusive (the “Class Period”).
The Complaint charges that Sonoco and certain of its officers and
directors violated federal securities laws by issuing materially false
and misleading statements regarding the Company’s business and
financial results. Specifically, defendants failed to disclose the
following facts: (i) that the Company was losing market share to its
competitors; (ii) that Sonoco was having operational difficulties in
implementing its next generation of products; (iii) that the Company
was experiencing weaker sales in its Engineered Carriers and Paper and
Consumer Packaging segments, especially in North America; (iv) that
Sonoco was distracted by the loss of a bid on a large contract, which
resulted in decreased sales and price concessions on current contracts;
(v) that the Company was having a difficult time in moving its old
inventory; and (vi) that as a result of the forgoing, Sonoco had no
reasonable basis for its 2007 earnings guidance.
On July 20, 2007, Sonoco announced its financial results for the second
quarter of 2007, the period ended July 1, 2007. For the quarter, the
Company reported earnings of $0.41 per diluted share, below analysts’
expectations. In response to this announcement, shares of the Company’s
common stock fell $6.30 per share, or over 14%, to close at $38.00 per
share. Then on September 18, 2007, Sonoco announced that it was
reducing its third quarter 2007 base earnings estimate to a range of
$0.55 to $0.58 per diluted share. On this news, shares of Sonoco’s
stock fell $2.42 per share, or over 7%, to close at $30.78 per share.
If you are a member of the class, you may, no later than August 25,
2008, request that the Court appoint you as lead plaintiff of the
class. A lead plaintiff is a class member that acts on behalf of other
class members in directing the litigation. Although your ability to
share in any recovery is not affected by the decision whether or not to
seek appointment as a lead plaintiff, lead plaintiffs make important
decisions which could affect the overall recovery for class members.
While Schatz Nobel Izard P.C. has not filed a lawsuit against the
defendants, to view a copy of the Complaint initiating the class action
or for more information about the case, class action cases in general,
and your rights, please contact Schatz Nobel Izard P.C. toll-free at
(800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website:
www.snilaw.com.
