BALA CYNWYD, Pa., March 12, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
A securities class action lawsuit pending in the U.S. District Court for the Northern District of Florida, Gainesville Division claims that sued Regeneration Technologies, Inc. ("RTI" or the "Company") (Nasdaq:RTIX) misled shareholders about its business and financial condition.
Plaintiff seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of all investors who bought Regeneration Technologies, Inc. securities between July 25, 2001 and January 31, 2002 (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 Regeneration Technologies, 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 Regeneration Technologies, Inc. and certain of its officers and directors with issuing false and misleading statements concerning the Company's business and financial condition. Specifically, the complaint alleges that defendants made highly positive statements regarding the Company's financial results. RTI reported quarter after quarter of "record" financial results and strong revenue growth which caused the price of RTI securities to trade as high as $12.82 per share during the Class Period. These statements were allegedly false and misleading because the Company failed to take a charge to earnings to recognize worthless inventory.
On February 2, 2002, RTI shocked the market by announcing that the Company was delaying its fourth quarter and year-end results for fiscal year 2001 while "management completes its evaluation of certain inventory issues." The Company also announced that its Chief Financial Officer Richard Allen and Vice President of Marketing and Sales James Abraham are leaving the Company, effective immediately. The Company further announced that it is "evaluating whether these issues may affect RTI's previously reported financial results," and although "RTI's annual results have not been finalized, company officials expect to report a loss for both the quarter and the year." In response to the news the price of RTI stock plunged more than 50% from $10.15 on January 31, 2002 to $5.19 on February 1, 2002.
If you purchased Regeneration Technologies, Inc. securities between July 25, 2001 and January 31, 2002, you may be a member of the class and have until April 5, 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