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Sonoco Products Company Summary: On October 14, 2008, an amended complaint was filed.
According to a law firm press release, an institutional investor filed a class action lawsuit against Sonoco Products and certain of its officers and directors charging violations of the Securities Exchange Act of 1934. Sonoco Products manufactures industrial and consumer packaging products, and packaging services primarily in the United States, Europe, and Canada.
The complaint alleges that, during the Class Period, defendants issued a series of materially false and misleading statements concerning the Company's financial performance and prospects. Specifically, the complaint alleges that these statements were materially false and misleading because defendants failed to disclose and/or misrepresented: (i) that the Company was losing market share to its competitors; (ii) that the Company was having operational difficulties in implementing its next generation of products; (iii) that the Company was experiencing weaker sales in its Engineered Carriers and Paper and Consumer Packaging segments, especially in North America; (iv) that the Company was distracted by the loss of a bid on a large contract, which resulted in decreased sales and price concessions on current contracts; (v) that the Company was having a difficult time in moving its old inventory; and (vi) that as a result of the forgoing, the Company had no reasonable basis for its 2007 earnings guidance.
On July 20, 2007, the Company announced its financial results for the second quarter of 2007, the period ended July 1, 2007. For the quarter, the Company reported earnings of $0.41 per diluted share, below analysts' expectations. In response to this announcement, shares of the Company's common stock fell $6.30 per share, or over 14%, to close at $38.00 per share, on heavy trading volume.
On September 18, 2007, the Company announced that it was reducing its third quarter 2007 base earnings estimate to a range of $0.55 to $0.58 per diluted share. Upon this news, shares of the Company's stock fell $2.42 per share, or over 7%, to close at $30.78 per share, on heavy trading volume.
INDUSTRY CLASSIFICATION:
SIC Code:
Sector: Consumer Non-Cyclical
Industry: Office Supplies
| COMPANY/ISSUER NAME: | Sonoco Products Company |
| COMPANY/ISSUER TICKER: | SON |
| COMPANY WEBSITE: | http://www.sonoco.com |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| City of Ann Arbor Employees' Retirement System, et al. v. Sonoco Products Company, et al. | |||||||||||||||||
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| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Class Action Complaint for Violations of Federal Securities Laws - Demand for Jury Trial | |||
| Type: Complaint | Date on the document: 6/26/2008 | ||
| REFERENCE COMPLAINT | |||||||||||||||||
| City of Ann Arbor Employees' Retirement System, et al. v. Sonoco Products Company, et al. | |||||||||||||||||
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| DOCUMENTS FOR THE REFERENCE COMPLAINT | |||
| Amended Class Action Complaint | |||
| Type: Complaint | Date on the document: 10/14/2008 | ||
| US District Court Civil Docket | |||
| Type: Docket | Date on the document: 10/14/2008 | ||
| OTHER DOCUMENTS | |||
| Case Name and/or Number: | |||
| Type: | Date on the document: | ||
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