PHOENIX -- A bankruptcy court judge here is expected to combine three class action lawsuits filed against Megafoods Stores, its officers and directors and PaineWebber into a single suit sometime in the next few months.
intiffs in each of the suits claim the company and its underwriters made false and misleading claims to provide a more positive image for the company.
Named as defendants in each suit are Dean G. Miller, former chairman, president and chief executive officer of Megafoods; Jack J. Walker, former chief financial officer; John E. Moll, Gregory S. Anderson and Laurie R. Pollitt, Megafoods directors, and PaineWebber, the New York-based underwriter.
The three suits were filed in U.S. District Court in Arizona by Prentice Securities, a New York-based investor; Allan Pall, an individual investor living in San Diego, and Joan Coyne, an individual investor living in New York.
Megafoods filed for Chapter 11 protection on Aug. 17 after claiming difficulties with its primary supplier, Fleming Cos., Oklahoma City. It continues to operate 50 locations in Arizona, Nevada and Texas.