NEW YORK, Feb. 6, 2003 (PRIMEZONE) -- Wolf Popper LLP has filed a securities lawsuit against Cosi, Inc. (Nasdaq:COSI) on behalf of persons who purchased Cosi common stock issued under and/or traceable to the Company's Registration Statement and Prospectus ("Registration Statement/Prospectus") dated November 13, 2002, which was declared effective by the SEC on November 21, 2002, and filed in connection with Cosi's initial public offering ("IPO"), through February 3, 2002, inclusive ("Class Period".)
Defendants in this action include certain of the Company's executive officers and members its Board of Directors, as well as William Blair & Co., the underwriter on the IPO.
The plaintiff alleges that the Registration Statement/Prospectus contained materially false and misleading statements concerning the Company's business prospects and the expected use of the IPO proceeds. Specifically, the plaintiff alleges that the Company misrepresented its ability to use the IPO proceeds to open 53 to 59 restaurants in 2003.
Ten short weeks after the offering, on February 3, 2002, the falsity of defendants' statements in the Registration/Statement became abundantly clear. In a press release on that date, the Company announced that the financing from the offering was inadequate to open 53 to 59 new stores and that Cosi expected to open only 10 Company-owned restaurants in 2003. Following the disclosure, the price per share of Cosi common stock fell $1.67 or almost 40% to close on February 4, 2003 at $2.80 per share.
Class members have until April 7, 2003 to file motions to be appointed lead plaintiff. Class members who acquired shares of Cosi common stock in the IPO or during the Class Period, and other persons with information that may be helpful to the prosecution of the action, are urged to contact Wolf Popper LLP, a New York law firm specializing in class action litigation, concerning their rights at:
Wolf Popper LLP Robert Finkel, Esq. 845 Third Avenue New York, NY 10022 Tel.: 212.451.9668 Toll Free: 877.370.7703 Fax: 212.486.2093 Toll Free: 877.370.7704 Email: irrep@wolfpopper.com website: www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca