MU president on board being sued by investors

Sunday, July 28, 2002

COLUMBIA, Mo. -- A bankrupt New York clothing firm whose board of directors includes University of Missouri president Manuel Pacheco has been sued for allegedly misleading investors about profit margins.

Warnaco Group Inc., a New York-based clothing manufacturer whose products are sold under such brands as Calvin Klein, Speedo and Chaps, sought Chapter 11 bankruptcy protection in June 2001. Now Warnaco faces two class-action lawsuits claiming the company misled investors about profit margins shortly before it took bankruptcy protection.

"Essentially, the charge is a vast failure to be truthful about the financial condition of the company," said Fred Isquith, an attorney representing plaintiffs in one of the lawsuits.

It does not appear that Pacheco received the kind of big payouts many executives of now-bankrupt companies are currently being criticized for accepting.

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