A class action suit was filed in the United States District Court for the District of Minnesota on behalf of Nash Finch Company stockholders, charging that the company violated the Securities exchange Act of 1934.
The suit charges that the company “issued false statements, including false financial results in which the Company included income from vendor promotions to which Nash Finch was not entitled, so as to maintain favorable credit ratings on its debt. As a result of defendants' false statements, the Company's stock traded at artificially inflated levels, permitting Nash Finch to maintain credit ratings on its $400 million in debt.”
Nash Finch has not yet released its last quarter’s results, which has led to the possibility that it will be delisted from the Nasdaq exchange. In addition, it is being investigated by the US Securities and Exchange Commission (SEC) for possible accounting misdeeds.
The suit charges that the company “issued false statements, including false financial results in which the Company included income from vendor promotions to which Nash Finch was not entitled, so as to maintain favorable credit ratings on its debt. As a result of defendants' false statements, the Company's stock traded at artificially inflated levels, permitting Nash Finch to maintain credit ratings on its $400 million in debt.”
Nash Finch has not yet released its last quarter’s results, which has led to the possibility that it will be delisted from the Nasdaq exchange. In addition, it is being investigated by the US Securities and Exchange Commission (SEC) for possible accounting misdeeds.
- KC's View:
- This is becoming a familiar story…and we hope for Nash Finch’s sake, that it comes through it all intact. After the boom years of the 90s, stockholders just don’t take losses very well…
