14 January 2005 – Bala Cynwyd (PA): A class action suit has been filed against OfficeMax in the US district court in Illinois on behalf of shareholders, law firm Schiffrin and Barroway has announced.
The complaint charges OfficeMax, executive chairman George Harad, president/CEO Chris Milliken, and former CFO Ted Crumley, who is to return to the position on an interim basis following the departure of Brian Anderson, with violations of the Securities Exchange Act of 1934.
It also accuses OfficeMax of falsifying documents worth $3.3 million to one of its vendors during 2003 and 2004. Furthermore, it claims that OfficeMax improperly timed the recognition of vendor payments, and that its financial results were in violation of Generally Accepted Accounting Principles (GAAP).
OfficeMax stated this week that it would delay the release of its Q4 and full year 2004 earnings until the investigation had been completed.