CKC Collins & Aikman Corp

Investor Sues Collins & Aikman Corporation for Stock Fraud, Berman DeValerio Pease Tabacco Burt & Pucillo Announces BOSTON, April 8 /PRNewswire/ -- An investor sued Collins & Aikman Corporation ("C&A" or the "Company") (NYSE:CKC) today, claiming that the auto parts maker misled investors about its finances. Berman DeValerio Pease Tabacco Burt & Pucillo (http://www.bermanesq.com/) filed the class action in the U.S. District Court for the Eastern District of Michigan. The lawsuit seeks damages for violations of federal securities laws on behalf of all investors who purchased C&A common stock from May 15, 2003 through and including March 17, 2005 (the "Class Period"). To receive a copy of the complaint, you may contact the court, call the firm at (800) 516-9926 or go to http://www.bermanesq.com/pdf/CollinsAikman_Cplt.pdf. The lawsuit claims that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder, including U.S. Securities and Exchange Commission ("SEC") Rule 10b-5. Although C&A reported steady revenues throughout the Class Period, the Company's seemingly optimistic financial prospects were the direct result of artificially inflated revenues caused by improper accounting for supplier credits and rebates, the complaint alleges. On March 17, 2005, C&A shocked the investing public by announcing a delay in its 2004 earnings report for a second time due to improper accounting practices related to supplier rebates, which would likely result in a restatement for Fiscal Year 2004. The Company further announced that its internal investigation was ongoing and that the accounting improprieties may result in the Company restating its financial results for Fiscal Year 2003. In particular, C&A reviewed its accounting practices dating back to 2002 and discovered that it had overstated revenues by approximately $12 million. On the heels of those revelations, C&A's common stock fell nearly 24% from a closing price of $1.63 on March 16, 2005 to close at $1.24 on March 17, 2005. If you purchased C&A common stock from May 15, 2003 through and including March 17, 2005 you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests. Leslie R. Stern, Esq. Bryan A. Wood, Esq. One Liberty Square Boston, MA 02109 (800) 516-9926 If you wish to apply to be lead plaintiff in this action, a motion on your behalf must be filed with the court no later than June 6, 2005. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action, or you may submit information online at http://www.bermanesq.com/Securities/Signup1.asp?caseid=539. Please note, you may also retain counsel of your choice and need not take any action at this time to be a class member. Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations, and consumer fraud. DATASOURCE: Berman DeValerio Pease Tabacco Burt & Pucillo CONTACT: Bryan A. Wood, Esq., of Berman DeValerio Pease Tabacco Burt & Pucillo, +1-800-516-9926 Web site: http://www.bermanesq.com/

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