Royal Ahold scandal investigation deepens

May 1, 2003
The law firm Wolf Haldenstein Adler Freeman & Herz has launched an additional investigation into Royal Ahold because of reports that Sara Lee Corp has

The law firm Wolf Haldenstein Adler Freeman & Herz has launched an additional investigation into Royal Ahold because of reports that Sara Lee Corp has suspended three employees who provided US Foodservice auditors with inaccurate information about the size of its vendor discounts.

These discounts may have contributed to an accounting scandal that caused Ahold, a Netherlands-based supermarket and foodservice operator, to overstate earnings by at least $500 million.

How US Foodservice accounted for vendor allowances is at the heart of investigations by the Securities and Exchange Commission and the Justice Department. Ahold said in February that it overstated 2001 and 2002 earnings by at least $500 million, sending the company's stock plunging and resulting in the ouster of its two top executives.

Wolf Haldenstein previously filed a federal securities class action complaint in the United States District Court for the Southern District of New York against Ahold, certain of its officers and directors, and its accountant, Deloitte Touche Tohmatsu.

The complaint was filed on behalf of those who purchased Ahold securities between May 15, 2001, and Feb 21, 2003. It alleges that defendants violated federal securities laws by issuing materially false and misleading statements throughout the class period that artificially inflated the market price of the company's securities.

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Leveraging telematics to get the most from insurance

Fleet owners are quickly adopting telematics as part of their risk mitigation strategy. Here’s why.

Reliable EV Charging Solution for Last-Mile Delivery Fleets

Selecting the right EV charging infrastructure and the right partner to best solve your needs are critical. Learn which solution PepsiCo is choosing to power their fleet and help...

Overcoming Common Roadblocks Associated with Fleet Electrification at Scale

Fleets in the United States, are increasingly transitioning from internal combustion engine vehicles to electric vehicles. While this shift presents challenges, there are strategies...

Report: The 2024 State of Heavy-Duty Repair

From capitalizing on the latest revenue trends to implementing strategic financial planning—this report serves as a roadmap for navigating the challenges and opportunities of ...