Once Profitable Krispy Kreme Faces Fraud Accusations, Financial Worries

Law360, New York (October 26, 2005, 12:00 AM EDT) -- Krispy Kreme Doughnuts, a company mired in financial trouble and an increasing number of lawsuits, has filed a motion to dismiss a class-action lawsuit alleging the company made false statements about projected earnings just before the stock collapsed.

The suit, covering the class period between March 8, 2001 and April 18, 2005, claims Krispy Kreme executives hid the fact that the company’s sales were slowing and made false statements about profits.

Additionally, shareholders allege that the company violated accounting rules and misreported revenue.

The executives named...
To view the full article, register now.