HOUSTON, June 20, 2003 (PRIMEZONE) -- Emerson Poynter LLP, a securities class action trial law firm, announced today that a class action lawsuit has been filed in the United States District Court for the Middle District of Florida, Tampa Division, on behalf of purchasers of Cryo-Cell International, Inc. ("Cryo-Cell" or the "Company") (NYSE:CCELE) publicly traded securities during the period between March 16, 1999 and May 20, 2003, inclusive (the "Class Period"). A copy of the complaint can be obtained from the Court or by making a toll-free call to the Firm.
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 March 16, 1999 and May 20, 2003, thereby artificially inflating the price of Cryo-Cell securities. During the Class Period, the Company issued statements that failed to disclose and/or misrepresented the following adverse facts, among others: (1) that the Company had materially overstated its earnings, net income and earnings per share; (2) that the Company continually recognized revenue in violation of generally accepted accounting principles ("GAAP") and the Company's own internal accounting principles with respect to the following: (a) related-party transactions; (b) revenue sharing agreements; and (c) revenue recognition for the sale Area Licenses; (3) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (4) that as a result, the Company's financial results were materially overstated at all relevant times.
On April 15, 2003, the Company issued a press release wherein it disclosed that it may be necessary to restate its financial results for fiscal years 2001 and 2002 because of improper recognition of revenue. Shortly thereafter, on May 20, 2003, the Company issued a press release announcing the resignation of its auditor, Ernst & Young LLP and the Company's continued assessment of certain revenue recognition accounting policies. On news of this, Cryo-Cell shares fell 14%. If you purchased Cryo-Cell securities between March 16, 1999 and May 20, 2003, inclusive, and you wish to serve as lead plaintiff, you must move the Court through Emerson Poynter or other counsel of your choice, not later than August 4, 2003. If you are a member of this class, you can join this class action by contacting Emerson Poynter via e-mail or calling toll-free.
Emerson Poynter has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Houston, Texas and Little Rock, Arkansas, 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 toll free or e-mail the firm. John G. Emerson, Emerson Poynter LLP, 830 Apollo Lane, Houston, TX 77058. Phone (281) 488-8854.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.