Supervalu Charged With Securities Fraud Suit

Supervalu gave “false and misleading” financial guidance that helped the retailer raise $1 billion through the debt market before a downward revision sent its stock reeling, according to allegations in a lawsuit filed here Monday.

The suit seeks class-action status on behalf of investors who bought Supervalu stock between April 23 — when the company announced fourth-quarter sales results and fiscal 2010 guidance — and June 23, when the company announced that first-quarter earnings would be below expectations. Supervalu stock fell by 12% on heavy volume that day.

The suit alleges that Supervalu intentionally overstated earnings guidance so as to close a $1 billion debt offering in late April.

A spokeswoman for Supervalu, based in Minneapolis, said the company does not comment on lawsuits as a matter of policy.

Supervalu has always been a good company in my eyes.  We will have to see what comes of this.

Thanks

Jason Berkes

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