Thursday, May 31, 2001
Tristate Summary
Suit says Kroger overstated values
Kroger Co. has been sued bya group of shareholders who say the largest U.S. grocer and its officers overstated the value of the company's shares in financial statements.
Cincinnati-based Kroger said March 5 it would restate earnings for the past three years because of accounting irregularities at its Ralphs Grocery division, which Kroger acquired in 1999. Ralphs operates 450 stores in the Western U.S.
The lawsuit, which seeks class-action status in U.S. District Court in Cincinnati, contends that Kroger officials knew about the accounting problems beginning in September.
The defendants include Joseph A. Pichler, Kroger's chairman and chief executive, according to a statement released Wednesday by plaintiffs' attorneys, Schiffrin & Barroway LLP of Bala Cynwyd, Pa.
“We believe the lawsuit is without merit and will vigorously defend against it,” said Gary Rhodes, a spokesman for Kroger.
Manufacturers: get boost in May
Greater Cincinnati manufacturers reported increased production and new orders this month, signaling an improvement in the local economy, according to a monthly poll by the National Association of Purchasing Management-Cincinnati.
About 33 percent of companies polled said production was up in May, compared with 8 percent in April.
On new orders, 41 percent said orders rose in May, compared with 7 percent in April.
Still, those companies aren't hiring. As in April, no employer said it added workers in May.
For the rest of 2001, more than half the companies reported they expect new orders to increase, but none plan to add workers.
The national purchasing managers' report for May will be released Friday.
— From staff and wire reports
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