ATLANTA, Oct. 3, 2003 (PRIMEZONE) -- The Law Firm of Holzer Holzer & Cannon, LLC announced today that it has filed a class action lawsuit in the United States District Court for the Northern District of Georgia, on behalf of purchasers of HealthTronics Surgical Services, Inc. ("HealthTronics" or the "Company") (Nasdaq:HTRN) common stock during the period between January 4, 2000 and July 25, 2003, inclusive (the "Class Period") against HealthTronics Surgical Services, Inc., Argil J. Wheelock, M.D., Russell Maddox, Martin McGahan, and Victoria W. Beck. The class action lawsuit was assigned civil action number 1:03-CV-3003. A copy of the Complaint filed in this action is available from the Court, or can obtained by emailing mfistel@holzerlaw.com.
The Complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between January 4, 2000 and July 25, 2003, thereby artificially inflating the price of HealthTronics' common stock. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts that were known to Defendants or recklessly disregarded by them: (1) that the clinical results of that Company's OssaTron(r) device resulted in only a marginal difference in patients' own assessment of heel pain following treatment, and no statistical difference in their assessment of activity or use of pain medication following OssaTron(r) treatment as compared to the placebo treatment; (2) that the Company knew or was severely reckless in not knowing that insurance companies would be, and/or had been reluctant to provide coverage for a product with questionable effectiveness; and (3) that the Company was aware of said problems afflicting its OssaTron(r) device and their effects on the demand for such device, and therefore lacked any reasonable basis for providing certain earnings guidances.
As alleged in the Complaint, on July 28, 2003, the Company issued a press release announcing that it was downgrading its previously announced earnings guidance, stating that it expected earnings to be in the range of $0.45 to $0.55 per share for fiscal year 2003, as opposed to its earlier guidance of $0.69 to $0.74 per share. The Complaint alleges that the downgraded guidance was attributed to declining growth in demand for the Company's OssaTron(r) procedures and the continued reluctance of many third party payors to reimburse for the patients for the procedure. The Complaint further alleges that the Company's announcement caused the Company's shares to plunge 26.8 percent, or $2.92 per share, closing at $7.95 per share on July 28, 2003.
If you bought HealthTronics common stock between January 4, 2000 and July 25, 2003, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than November 25, 2003. If you are a member of this class and wish to join this class action, or if you have any questions concerning this Notice of Filing or your rights as a potential class member, or if you wish to serve as a lead plaintiff in this lawsuit, you may call or e-mail the attorney below. Any member of the purported class may move the Court to serve as lead plaintiff through Holzer Holzer & Cannon, LLC, or other counsel of their choice, or may choose to do nothing and remain an absent class member.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca