BALA CYNWYD, Pa., Sept. 3, 2003 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
A class action lawsuit was filed on July 25, 2003 in the United States District Court for the Eastern District of Pennsylvania on behalf of all securities purchasers of DVI, Inc. (NYSE: DVI) ("DVI" or the "Company") from November 7, 2001 through June 27, 2003, inclusive (the "Class Period"). Notice was published in Investor Business Daily on July 31, 2003. As such, if you are a member of the class described above, you may, not later than September 29, 2003, move the Court to serve as lead plaintiff of the class, if you so choose.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.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 November 7, 2001 and June 27, 2003, thereby artificially inflating the price of DVI's publicly traded securities. The Complaint alleges that these statements were materially false and misleading because they failed to disclose and misrepresented the following adverse facts, among others: (1) that the Company had failed to timely write down the value of certain assets which had become impaired; (2 ) that the Company's accounting and financial reporting policies and procedures for non-systematic (non-recurring) transactions were inadequate; (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 values of the Company's assets, net income and earnings per share were materially overstated at all relevant times.
The Class Period ends on June 27, 2003. On that date, DVI shocked the investing public when it announced that the SEC had rejected its March 30, 2003 quarterly report because it had not been reviewed by an independent auditor. The Company also disclosed that it was continuing to consider the need for the accounting change, and, if adopted, its net income for the third quarter of fiscal 2003, its earnings per share for the first nine months of fiscal 2003 and its net income for the fiscal year 2002 would all be drastically reduced. Specifically, the Company's net income for the third quarter of fiscal 2003 would be reduced by $1.4 million, or 44.47% , its earnings per share for the nine months ended March 31, 2003 would be reduced by $0.10, or 44.45% and its net income for fiscal year ended June 30, 2002 would be reduced by $1.395 million or 34.12%.
Investor reaction was swift and negative, with DVI stock falling from a close of $5.84 on June 26, 2003 to a close of $4.30 on June 27, 2003, or a single-day decline of more than 26% on very high trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/currentcases.cfm.
If you are a member of the class described above, you may, not later than September 29, 2003, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca