PHILADELPHIA, July 1, 2004 (PRIMEZONE) -- Law Offices Bernard M. Gross, P.C. (http://www.bernardmgross.com) announces that a class action lawsuit, numbered 04cv 3783, was commenced in the United States District Court for the Northern District of Illinois, against defendants Bally Total Fitness Holding Corporation ("Bally" or the "Company") (NYSE:BFT), Paul A. Toback -- Chairman of the Board of Directors, President and Chief Executive Officer, John W. Dwyer -- Chief Financial Officer, Executive Vice President and Board Member and Lee S. Hillman -- former Chief Executive Officer and President, on behalf of all persons who purchased Bally's common stock (NYSE:BFT), between May 17, 1999 and April 28, 2004 (the "Class Period") seeking remedies under the Securities Exchange Act of 1934 (the "Exchange Act").
The complaint alleges that, defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing a series of materially false and misleading statements to the public which described the Company's increasing financial performance. Unbeknownst to the market, Bally, in violation of its own revenue recognition policy and generally accepted accounting principles ("GAAP"), was improperly recognizing revenue relating to non-obligatory prepaid membership dues, thereby materially inflating its reported revenues and income. The full impact of defendant's improper conduct was not understood by the market until April 28, 2004, when Bally announced the resignation of defendant, John W. Dwyer without further explanation and announced that "the Division of Enforcement of the Securities and Exchange Commission had commenced an investigation in connection with the Company's recent restatement regarding the timing of recognition of prepaid dues. The Company is cooperating fully with the SEC on this matter." On April 29, 2004, when the market opened, Bally shares plummeted as low as $4.01 per share to close at $4.50 per share on volume of 2.3 million shares, compared to a low of $5.32 per share and a closing price of $5.40 just the previous day.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Deborah R. Gross or Susan R. Gross of Law Offices Bernard M. Gross at 866-561-3600(toll-free) or via e-mail at susang@bernardmgross.com. If you are a member of this class, you can view a copy of the complaint as filed at http://www.bernardmgross.com. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you purchased or otherwise acquired the securities of BALLY TOTAL FITNESS HOLDING CORPORATION between May 17, 1999 through and including April 28, 2004, and sustained damages, you may, no later than July 26, 2004, file a motion to be appointed lead plaintiff, if you so choose. Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca