A class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of purchasers of Day Runner Inc. securities ("Day Runner" or the "Company") (NASD:DAYR) from October 20, 1998 to and including August 31, 1999 (the "Class Period").
Day Runner develops, manufactures and markets personal organizing products to broad-based consumer audiences through retail distribution channels.
The defendants include Day Runner and certain of its officers and directors. The Complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10-b(5). Specifically, the Complaint alleges that during the Class Period, defendants, among other things, materially misrepresented the financial condition of Day Runner by disseminating to the investment community false and misleading financial statements for the 1999 fiscal reporting period. It is further alleged that these financial statements were deceptive and failed to conform with both mandatory Securities and Exchange Commission ("SEC") guidelines and Generally Accepted Accounting Procedures ("GAAP") and that the Company had improperly recorded revenues and earnings for fiscal year 1999 due to improper accounting of manufacturing variances and other costs.