Fleming Fights Back
Fleming is holding a conference call this morning to address what the wholesaler calls “errant speculation” and “misleading information in the marketplace”, says Reuters.
Yesterday, Fleming’s shares fell more than 20 percent during trading as the market reacted to a class-action lawsuit against the company alleging that Fleming misled shareholders about its financial conditions. Fleming calls the suit “baseless and without merit”. Shares rebounded from their low to finish off about 14% on the day.
Moderator’s Comment: Is the market overreacting on
Fleming? What is your assessment of the wholesale grocery business?
We’re anxious to hear what happens at today’s conference
call. As far as the shareholder action goes, suits will happen when investors
lose money. We’ll leave it up to the courts to decide on the merits of the case
before we weigh in.
Fleming shares have taken a hit this year, in large part,
because of Kmart’s troubles. The company also saw its investment rating cut
over the summer by J.P. Morgan. [George
Anderson – Moderator]