Stull, Stull & Brody Announces Class Action Against OfficeMax, Inc

Business Wire, Oct 6, 2000

Business & Legal Editors

NEW YORK--(BUSINESS WIRE)--Oct. 6, 2000

The following is an announcement by the law firm Stull, Stull & Brody:

Notice is hereby given that a class action lawsuit was filed on October 6, 2000, in the United States District Court, Northern District of Ohio on behalf all persons who purchased the securities of OfficeMax, Inc., ("OfficeMax" or the "Company") (NYSE:OMX) between March 2, 1999 and September 30, 1999, (the "Class Period").

The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between February 2, 2000 and September 1, 2000, thereby artificially inflating the price of OfficeMax securities. The complaint charges OfficeMax and certain of its officers and directors with violations of the Securities Exchange act of 1934. OfficeMax operates a chain of several hundred discount supply superstores or warehouse selling a broad range of office supply products, including computers. The complaint alleges a broad range of office supply products, including computers. The complaint alleges that beginning on March 2, 1999, when OfficeMax reported its 4th Q fiscal 1998 ("F98") results, OfficeMax, Michael Feuer (chairman and chief executive officer) and Jeffrey L. Rutherford (executive vice president and chief financial officer) made false and misleading statements about the successful realignment of OfficeMax's business model, the strong performance and positive momentum of OfficeMax's Core Business Segment (which sold office supplies, furniture and business machines excluding computers) and the Core Business Segment's improving profitability due to its enlarged merchandise assortment and effective inventory management. These bullish representations and forecasts artificially inflated OfficeMax's stock to a Class Period high of $12 1/8 on May 18, 1999, from $7 5/8 just before the Class Period began. But then, on Sept. 30, 1999, OfficeMax revealed that its 2nd H F99 and F00 financial results were going to be much worse than earlier forecast. OfficeMax's stock fell by over 32% in two days to $5, the largest two-day percentage price decline in OfficeMax's history as a public company, on trading volume of over 10 million shares, and then continued to fall to as low as $4 1/2 per share, its lowest price ever a drop from which it has not recovered.

Plaintiff seeks to recover damages on behalf of class members and is represented by, among others, the law firm of Stull, Stull & Brody. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 25 years and has obtained court approval of substantial settlements on numerous occasions.

If you bought the securities of OfficeMax between March 2, 1999 and September 30, 1999, you may, no later than sixty days from September 27, 2000 request the Court appoint you as lead plaintiff. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at SSBNY@aol.com, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017.