HARTFORD, Conn., March 22, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Middle District of Florida on behalf of all persons who purchased or otherwise acquired the publicly traded securities of PainCare Holdings, Inc.("PainCare" or the "Company") (AMEX:PRZ) between August 27, 2002, and March 15, 2006, inclusive, (the "Class Period"). Also included are all those who acquired PainCare in a secondary offering in October of 2004, or through the acquisitions of Dynamic, Denver Pain, PainCare, Inc., Amphora, REC, Inc., PHS Alpha, Center for Pain Management or Desert Pain.
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, defendants engaged in improper accounting practices in order to bolster the Company's stock price, thereby enabling the Company to complete numerous acquisitions of related pain care companies during the Class Period. The Complaint further alleges that throughout the Class Period defendants directly participated in an accounting fraud which materially overstated the Company's financial results by improperly accounting for its numerous acquisitions and certain other non-cash expenses.
On March 15, 2006, defendants revealed that PainCare's financial results would be restated for fiscal years 2000-2005, its entire corporate existence. On this news, PainCare's stock price dropped by nearly 13% and has lost more than 50% of its value from the stock's Class Period high.
If you are a member of the class, you may, no later than May 19, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.