NEW YORK, Jan. 2, 2004 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Southern District of Texas, Houston Division, case number H-04-0007, on behalf of all persons or entities who purchased Dynacq Healthcare, Inc. ("DYIIE" or the "Company") securities ((Nasdaq:DYIIE) and formerly (Nasdaq:DYII) during the period between January 14, 2003 and December 18, 2003, both dates inclusive (the "Class Period"). The Complaint names Dynacq Healthcare, Inc., Philip S. Chan, and Chiu M. Chan as defendants.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J. Belfi or Gregory Linkh at Rabin, Murray & Frank LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at info@rabinlaw.com.
Plaintiff alleges, inter alia, that the defendants fraudulently certified that Dynacq's financial statements for the first three quarters of fiscal 2003 were compiled in compliance with Generally Accepted Accounting Principles ("GAAP").
The true facts were first revealed beginning on December 2, 2003, when the Company announced that it was requesting an automatic extension of up to 15 days to file its Form 10-K for fiscal year ended August 31, 2003 with the SEC. On December 18, 2003, the Company announced that its independent auditor, Ernst & Young LLP, had resigned due to the Company's "lack of internal controls necessary to develop reliable financial statements." Also on December 18, 2003, the Company announced that it had received a Nasdaq Staff Determination stating that Dynacq's stock could be delisted on December 30, 2003 due to Dynacq's failure to file its fiscal year 2003 10-K in a timely manner. Finally, on December 18, 2003, the Company announced that it had received notice that the SEC was conducting an investigation into Dynacq's reporting of its financial statements, revenue and cost recognition, allowances for doubtful accounts, and internal financial and accounting controls.
The market reacted negatively to these disclosures. Dynacq shares, after trading during the Class Period at a high of $27.37 per share, plummeted to a low of just $4.09 per share on December 19, 2003.
Plaintiff is represented by the law firm of Rabin, Murray & Frank LLP. Rabin, Murray & Frank LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Dynacq Healthcare, Inc. securities during the Class Period described above, you may, no later than February 24, 2004, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. Contact plaintiff's counsel Eric J. Belfi or Gregory Linkh of Rabin, Murray & Frank LLP to further discuss this action, this announcement, or your rights or interests.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca