NEW YORK, Jan. 31, 2008 (PRIME NEWSWIRE) -- Roy Jacobs & Associates announces that it has commenced a Class Action lawsuit in the United States District Court for the District of Massachusetts on behalf of a class (the "Class") of all persons who purchased or acquired securities of American Dental Partners, Inc. ("ADPI" or the "Company") (Nasdaq:ADPI) from August 10, 2005 through December 13, 2007 (the "Class Period").
For further information, please contact Roy L. Jacobs, Esq. toll-free at 1-888-884-4490 or by e-mail to rjacobs@jacobsclasslaw.com. You may also sign up at our website at www.jacobsclasslaw.com.
ADPI is a leading provider of business services to dental group practices throughout the United States. Park Dental Group ("PDG") located in Minneapolis-St. Paul area, was one of the dental groups which had a long-term contract agreement with ADPI, and provided ADPI with significant revenue. Indeed, PDG accounted for 29 percent of ADPI's consolidated net revenue in 2006.
The business relationship between ADPI and PDG worked well for a number of years, but disputes arose in 2004. In February 2006, PDG sued ADPI and its subsidiary. On December 12, 2007, in connection with the lawsuit, a jury found ADPI and/or its subsidiary liable for breach of contract, breach of implied covenants of good faith and fair dealing, breach of fiduciary duty, and tortious interference with contract and prospective advantage. The jury awarded PDG $88 million to compensate it for the injuries caused it by ADPI and its subsidiary and punitive damages of $42 million.
After the announcement of the jury verdict, ADPI's stock plummeted from $19.70 a share on December 11, 2007 to $14.34 on December 12, 2007, and then to $4.62 on December 13, 2007 after the announcement of the punitive damage award.
The complaint charges ADPI and certain of its officers and directors with violations of the federal securities laws by issuing a series of material misrepresentations to the market during the Class Period thereby artificially inflating the price of ADPI shares. More specifically, the complaint alleges that ADPI financial statements throughout the Class Period were materially false and misleading because defendants knew that a substantial amount of ADPI's revenue and earnings were obtained by conduct, which was wrongful and tortious as, found by a jury on December 12, 2007.
If you purchased ADPI shares during the Class Period, August 10, 2005 through December 13, 2007, you may qualify to serve as Lead Plaintiff on behalf of the Class. All motions for appointment as Lead Plaintiff must be filed by March 31, 2008. If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, please contact Roy L. Jacobs. Mr. Jacobs will personally speak with you at no cost or obligation.
You may also join this action by visiting our website at www.jacobsclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca.