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NEW YORK - Wolf Haldenstein Adler Freeman & Herz LLP has filed a class action lawsuit against Great Atlantic & Pacific Tea Co. Inc. on behalf of a shareholder group, alleging that the supermarket company violated the federal securities laws by issuing materially false and misleading statements that artificially inflated the market price of its securities.
The lawsuit was filed on Friday in the United States District Court for the District of New Jersey, and involves activity between November 15, 2001 and May 28, 2002.
The complaint alleges that released statements concerning A&P's quarterly and annual financial performance were materially false and misleading because the company was allegedly "utilizing inadequate accounting procedures concerning the identification of vendor allowances as well as the accounting of inventory in certain of its sections for fiscal year 2001, violating Generally Accepted Accounting Principles."
A&P recently announced that it would postpone the filing of its annual report with the SEC while an accounting review is carried out.