Pinkerton’s Sued Over Its Forecasts

Two investors have sued Pinkerton’s Inc. and its two top officers for allegedly issuing misleading financial forecasts to inflate the Van Nuys security firm’s stock price, according to published reports.

In a suit filed in federal court in Los Angeles, Stanley and Ruth Rintel contend that Pinkerton’s CEO Thomas W. Wathen and President Albert J. Berger sold more than 48,000 shares of stock before a June 18 announcement that earnings would be significantly below previous projections.

Pinkerton’s stock price has been as high as $36 in the past year, but the stock fell $5.75 to $16 on the day of the announcement.

Joel McIntyre, an attorney for Pinkerton’s, told The Times that he could not comment on the suit because neither he nor the officers had seen a copy of the suit. According to the published reports, the suit seeks class action status on behalf of buyers of Pinkerton’s common stock between Sept. 25, 1991, and June 18, 1992.

Separately, Pinkerton’s said Monday that starting Aug. 15, it will provide security for Hughes Aircraft Co. facilities in the Los Angeles area. Other terms of the contract were not disclosed.