SECOND SHAREHOLDER SUIT FILED AGAINST FTL OFFICERS
NEW YORK — A second lawsuit seeking class-action status has been filed against officers of bankrupt Fruit of the Loom Inc. by a shareholder.
As noted, a similar lawsuit was filed earlier this month. Each complaint alleges that the officers violated the antifraud provisions of federal securities laws.
Specifically, they are charged with “knowingly” engaging in a scheme designed to overstate the financial condition of Fruit of the Loom and artificially inflate the company’s stock price.
William Farley, former chief executive, and G. William Newton, former chief financial officer, are defendants in the first suit, but it wasn’t immediately known whether they were cited individually in the latest suit.
Weiss & Yourman represents the plaintiff in the latest suit, which was filed in a U.S. District Court in Kentucky at Bowling Green.
Milberg Weiss Bershad Hynes & Lerach is the law firm of record for the shareholder plaintiff in the first suit, also filed at Bowling Green.
Fruit of the Loom filed for Chapter 11 bankruptcy court protection in December.