Shareholder Class Action Filed Against CSK Auto Corporation

The following statement was issued yesterday by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of Arizona on behalf of all securities purchasers of CSK Auto Corporation (NYSE: CAO) ("CSK Auto" or the "Company") from June 4th, 2003 through April 13th, 2006, inclusive (the"Class Period").
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 Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The Complaint charges CSK Auto & certain of its officers & directors with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose & misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company improperly accounted for inventories & vendor allowances; (2) specifically, that the Company overstated its in-transit inventory, improperly included certain costs in its inventory, & improperly refunded or wrote off certain vendor allowance receivables; (3) that the Company's financial statements were presented in violation of Generally Accepted Accounting Principles; (4) that the Company lacked the necessary personnel & controls to issue accurate financial reports & projections; & (5) that, as a result of the foregoing, the Company's financial results were materially overstated at all relevant times.
On March 27th, 2006, before the market opened, CSK Auto shocked investors when it announced the postponement of its scheduling of a date for release of its 4th quarter & fiscal 2005 financial results and related investor call. The Company stated that the postponement was being made to provide adequate time for the Company & the Audit Committee of the Board of Directors of the Company to conduct a thorough review of certain accounting errors and irregularities discovered in the course of the Company's ongoing assessment of internal control over financial reporting required under Section 404 of the Sarbanes-Oxley Act of 2002 & an internal audit. On this news, shares of the Company's stock fell $1.26 per share, or 7.9%, to close, on March 27th, 2006, at $14.64 per share, on unusually heavy trading volume.
On April 14th, 2006, before the market opened, CSK Auto further stunned investors when it announced that, pending the completion of the previously announced investigation by the Audit Committee of the Company's Board of Directors into certain accounting errors & irregularities, the Company was delaying filing its annual report with the SEC for the fiscal year ended January 29th, 2006. On this news, shares of the Company's stock shed an additional 70 cents per share, or 5.1%, to close, on April 17th, 2006, at $13.06 per share, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members & is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state & federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, & has recovered billions of dollars on behalf of institutional & individual investors from the U.S. & around the world. For more info about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com.
If you are a member of the class described above, you may, not later than August 8th, 2006, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, & that the class member will adequately represent the class. Under certain circumstances, 1 or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.
CONTACT:
Schiffrin & Barroway, LLP
Darren J. Check, Esq.
Richard A. Maniskas, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll-free) or 1-610-667-7706
Or by e-mail at info@sbclasslaw.com