BALA CYNWYD, Pa., Jan. 24, 2002 (PRIMEZONE) -- Shareholders of SRI Surgical Express, Inc. (Nasdaq:STRC) who desire to serve as a lead plaintiff in a shareholder class action lawsuit now pending in federal court in Florida must submit an application with the Court by January 29, 2002 according to the law firm of Schiffrin & Barroway, LLP.
The lawsuit seeks damages for violations of the federal securities laws on behalf of all investors who purchased SRI Surgical Express, Inc. securities between July 23, 2001 and November 27, 2001 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of SRI Surgical Express, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our Website at www.sbclasslaw.com.
The complaint alleges that the Florida-based SRI Surgical Express, Inc. issued a series of material misrepresentations to the market before and during the Class Period, thereby artificially inflating the price of SRI common stock. Specifically, the complaint alleges that defendants issued a series of press releases touting SRI's new customer contracts such as the HealthTrust Purchasing Group contract announced on May 1, 2001, as well as "record" financial results for the third quarter of fiscal year 2001. In response, the price of SRI stock soared to over $41 per share in September 2001, and SRI was named to the Forbes magazine list of the best small companies in the country. The complaint also states that, unbeknownst to the investing public who purchased SRI stock during the Class Period at artificially inflated prices, SRI's business and financial conditions were rapidly deteriorating.
Indeed, on November 27, 2001, defendants revealed that the Company's previously issued financial statements for the third quarter of 2001 were false and that the Company's revenues and earnings were actually $1,034,000 and $262,000 less, respectively, than previously reported, and $.04 less per diluted share. As alleged in the complaint, these "newly" issued results did not meet analysts' estimates. In addition, the Company revealed that the outlook for the fourth quarter was far worse than investors had been led to believe. Defendants reported for the first time that the "pricing impact of new group purchasing organization arrangements on existing hospital customers," among other previously undisclosed problems detailed in the complaint, contributed to the third quarter shortfall and expected fourth quarter 2001 shortfall. According to the complaint, in response to the news that SRI would not meet third or fourth quarter analyst estimates and had improperly recognized revenue in the third quarter of 2001, SRI stock plunged over 40%, closing at $14.63 on November 28, 2001, on unusually high volume of 2.7 million shares. The impact of defendants' improper accounting practices was devastating to SRI investors.
If you purchased SRI Surgical Express, Inc. securities during the period of July 23, 2001 through November 27, 2001, you may be a member of the class and have until January 29, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our Website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca