010382 Lawsuit Seeks Damages for IBP ShareholdersMarch 24, 2001Little Rock, AR - The Law Firm of Cauley Geller Bowman & Coates, LLP announced that it has filed a class action in the United States District Court for the District of South Dakota on behalf of all individuals and institutional investors that purchased the common stock of IBP, Inc between February 7, 2000 and March 13, 2001, inclusive (the “Class Period”). The complaint charges that the Company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading information about the Company's business and financial condition, and as a result of these false and misleading statements the Company's stock traded at artificially inflated prices during the Class Period. Specifically, the complaint alleges that on December 29, 2000, the Securities and Exchange Commission (“SEC”) sent IBP's lawyer's a comment letter citing 45 instances of improper accounting during the Class Period. On March 13, 2001, the Company announced that it filed amended disclosure statements with the SEC due to “financial misstatements and irregularities.” IBP also confirmed that it was taking a pretax charge of $47 million relating to a review of operations at its DFG Foods subsidiary (“DFG”). In addition, the Company was restating the Company's earnings for all of 1999 and the first three quarters of 2000, taking a $9.5 million non-cash charge against fourth quarter earnings as a result of a changed accounting method for executive compensation expenses. Finally, Defendants revealed for the first time it was changing its accounting for revenue recognition, resulting in a charge to earnings of $2.4 million.
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