Saturday, February 18, 2006

CLASS ACTION LAWSUIT AGAINST THE MILLS CORP

The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Eastern District of Virginia on behalf of all persons who acquired the publicly traded securities of The Mills Corp. (“Mills” or the “Company”) (NYSE: MLS) between August 14, 2003 and January 6, 2006, inclusive, (the "Class Period").
The Complaint alleges defendants violated federal securities laws by issuing a series of materially false statements regarding Mills’ financial condition. Specifically, defendants failed to disclose that: (i) Mills’ accounting treatment with respect to its MEI subsidiary was inappropriate; (ii) Mills mismatched the accrual of its Long Term Incentive Plan (“LTIP”) liabilities with employee service periods; (iii) ten of the Company's pre-development projects were failing and needed to be written-off; and (iv) the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”).
On October 31, 2005, Mills announced that its third quarter results would be delayed because the company needed additional time to review its accounting, and that the Company expected results to be lower than initially anticipated. Then on November 9, 2005, Mills announced poor financial results, with Funds From Operations declining 35%, and numerous write offs for previously undisclosed projects. Mills also announced that several top-level executives had announced plans to leave the Company. Finally, on January 6, 2006, Mills announced that it would be restating its financial results from 2000 through 2004, and the first nine months of 2005 primarily related to inappropriate accounting at its MEI subsidiary and to correct accounting for long term incentive compensation. In addition, Mills would write-off ten pre-development projects, and would take a charge of $71 million.
If you are a member of the class, you may, no later than March 20, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.

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