A&P Shareholder Claims Execs Hushed Faulty Finances

Law360, New York (September 9, 2011, 7:04 PM EDT) -- A shareholder of bankrupt grocery store chain The Great Atlantic & Pacific Tea Co. Inc. filed a putative class action Friday in New Jersey federal court, accusing the company's executives of failing to disclose A&P's precarious financial situation.

Named plaintiff Ricky Dudley claims A&P officers disseminated false and misleading statements that deceived investors about the condition of A&P's business, artificially inflated the company's stock price and enabled A&P to sell more than $430 million in debt on more favorable terms.

“Ultimately, however, when defendants' prior misrepresentations...
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