LITTLE ROCK, Ark., Jan. 11, 2002 (PRIMEZONE) -- The deadline for purchasers of SRI Surgical Express Incorporated ("SRI" or the "Company") (Nasdaq:STRC) common stock to move for lead plaintiff in a securities fraud class action recently brought against the Company is rapidly approaching. If you purchased SRI common stock between July 23, 2001 and November 27, 2001, inclusive (the "Class Period"), and you wish to be a lead plaintiff in the case, you must move to serve as lead plaintiff by filing a motion in the United States District Court for the Middle District of Florida, Tampa Division by January 29, 2002. A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's Website at http://www.classlawyer.com/pr/sri_surgical.pdf.
The complaint, filed by a client of the Law Firm of Cauley Geller Bowman & Coates, LLP, charges SRI and certain of its officers and directors with issuing 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 bought SRI common stock between July 23, 2001 and November 27, 2001 inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than January 29, 2002. If you are a member of this class, you can join this class action online at http://www.classlawyer.com/sign_up.html. Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller Bowman & Coates, LLP or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's Website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Investor Relations Department: Jackie Addison, Sue Null or Shelly Nicholson P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.