NEW YORK, June 9, 2008 (PRIME NEWSWIRE) -- The Brualdi Law Firm P.C. announces that a lawsuit has commenced in the United States District Court for the Western District of Wisconsin on behalf of purchasers of TomoTherapy Inc. ("TomoTherapy" or "the Company") (Nasdaq:TOMO) common stock during the period between February 13, 2008 and April 17, 2008 (the "Class Period").
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased TomoTherapy Inc. common stock during the period described above, you have certain rights, and have until no later than 60 days from July 29, 2008 in which to move for Lead Plaintiff status. 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.
To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Tali Leger, Director of Shareholder Relations at The Brualdi Law Firm, 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1877 or (212) 952-0602, by email to tleger@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com/
The complaint alleges that, during the Class Period, the Company, and certain of its officers and/or directors, violated federal securities laws by withholding material facts from the investing public. TomoTherapy develops markets and sells the Hi-Art system, is a radiation therapy system for the treatment of various types of cancer. As alleged in the complaint, defendants concealed in their February Press Release that (a) a larger percentage of TomoTherapy's revenue backlog at December 31, 2007 and TomoTherapy's new orders received through February 12, 2008 were from for-profit entities which had ordered multi-unit Hi-Art Systems and had scheduled deliveries of the multi-units sequentially throughout 2008 and 2009; (b) the average selling prices were lower in Q1'08 by approximately 11% than they had been in Q1'07 because Q1'07 sales included a large number of European sales denominated in Euros; (c) new sales orders from Europe had slowed in Q1'08 through February 12, 2008 and TomoTherapy was experiencing a serious delay in closing European orders; (d) TomoTherapy's gross margins in Q1'08 were and would continue to be approximately 20% lower than they had been in Q1'07; and (e) TomoTherapy's revenues in Q1'08 would be substantially lower and would not show increased growth from either Q1'07 or Q4'07 and that TomoTherapy would suffer a loss in Q1'08. Shortly after the February Release, director Neis sold approximately 917,621 shares of TomoTherapy common stock during February 26, 2008 through March 14, 2008.