A Florida law firm has filed a class action suit against Winn-Dixie on behalf of company shareholders, charging that even as the company was "suffering from substantial undisclosed long-term business and financial problems," then-CEO Allen Rowland was telling potential and existing investors "that Winn-Dixie was capitalizing on its strategic marketing plan."
According to the suit, in June 2003, Rowland stepped down as CEO, receiving a $7.7 million severance payment, and was replaced by Frank Lazaran, who ordered a comprehensive review of Winn-Dixie's "entire business model" even while telling "the public that the company was successfully executing its sales and marketing plan.: Just last week, Winn-Dixie announced a $79.5 million loss for its second fiscal quarter, which caused the company's stock to "plunge" almost 28 percent.
Hence the lawsuit.
According to the suit, in June 2003, Rowland stepped down as CEO, receiving a $7.7 million severance payment, and was replaced by Frank Lazaran, who ordered a comprehensive review of Winn-Dixie's "entire business model" even while telling "the public that the company was successfully executing its sales and marketing plan.: Just last week, Winn-Dixie announced a $79.5 million loss for its second fiscal quarter, which caused the company's stock to "plunge" almost 28 percent.
Hence the lawsuit.
- KC's View:
