You are here
NEW YORK - Shares of Fleming Cos. Inc. slid to their lowest level in more than two years on Friday. Reuters reported that the drop came after shareholders filed a lawsuit alleging the company inflated its stock price by falsely portraying sales at its retail operations.
A lawsuit seeking class action status was filed in a Texas court accusing Fleming executives of issuing "numerous positive statements" regarding its supermarket division. "These statements were made despite the fact that the defendants knew, or recklessly disregarded, that the (stores' performance) was disappointing," and in doing so artificially boosted the company's stock, shareholders' lawyers said in a statement.
Fleming denied the charges. "Fleming has acted, and continues to act, in compliance with federal securities laws and intends to vigorously defend the action," the company said in a statement.