Stockman, Stepp, and Cosgrove signed this registration statement knowing it contained false or misleading financial information.
54.In late 2004, KPMG learned of C&A's widespread effort to obtain rebates and requested documentation for all rebates negotiated in 2004. In early 2005, Stockman reluctantly agreed to begin an internal investigation by C&A management of the rebates. But rather than aggressively pursuing the investigation, Stockman attempted to limit its scope, minimize the significance of the violations, and conceal his involvement and the involvement of other senior C&A managers. Stockman also orchestrated an effort to conceal C&A's dire financial condition. In a March 17 press release, an earnings call on the same date, and a presentation to potential bond purchasers one week later, C&A materially misrepresented its financial condition. This deception enabled C&A to obtain $75 million in additional financing. Further, C&A's April 4, 2005 press release announcing this additional financing contained false or misleading financial information.
55.On March 17, 2005, C&A issued a press release announcing its fourth-quarter and year-end results for 2004 and disclosing that there had been improper accounting for rebates. This press release also provided information on C&A's liquidity situation and management's internal investigation of the rebates. Much of the information C&A provided with regard to its fourth quarter income, current liquidity situation, and the rebate investigation was materially false or misleading.
56.The March 17, 2005 press release stated that C&A's earnings before interest, taxes, depreciation, and amortization (commonly referred to as "EBITDA") for