ATLANTA, Dec. 26, 2003 (PRIMEZONE) -- Chitwood & Harley LLP announces that it has filed a securities fraud class action complaint against Dynacq Healthcare, Inc. ((Nasdaq:DYIIE) and formerly (Nasdaq:DYII)) and two of its senior officers on behalf of purchasers of Dynacq common stock from January 14, 2003 through December 18, 2003, inclusive. A copy of the complaint is available from the U.S. District Court for the Southern District of Texas, Houston Division, and will be posted on our firm's website, www.classlaw.com . If you have questions about this case or wish to inquire about your rights in connection with this matter, you may contact us through our website by clicking on Dynacq, or by emailing or calling Lauren S. Antonino, Esq. at lsa@classlaw.com or 1-888-873-3999 ext 6888.
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. Plaintiff charges, 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"). On December 2, 2003, 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.
Any member of the class (who purchased Dynacq common stock during the period January 14, 2003 through December 18, 2003, inclusive, and who suffered a loss, whether realized or unrealized) who desires to be appointed lead plaintiff in the class action must file a motion with the Court no later than February 24, 2003 on their own or through counsel of their own choice. Class members must meet certain legal requirements to serve as a lead plaintiff. Please feel free to contact Lauren Antonino, Esq., at Chitwood & Harley, who will, without obligation or cost, attempt to answer questions concerning your rights with respect to this matter.
Chitwood & Harley LLP is a class action firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States and has been instrumental in recovering billions of dollars on behalf of its clients. Clients and courts alike have praised the results achieved by Chitwood & Harley. Recently, the federal judge in In re BankAmerica Securities Litigation, which resulted in the highest recovery last year in a securities class action, commented favorably on counsel's performance stating: "Class members were well served by experienced attorneys who, through considerable time and effort, obtained a significant recovery for their clients," and, "(a)s the Court has remarked throughout this litigation, class counsel ... have performed at exceptionally high levels, and all parties have been exceedingly well represented."
For more information about Chitwood & Harley, please visit our website at www.classlaw.com or contact Lauren S. Antonino at 1-888-873-3999 (toll-free), by e-mail at lsa@classlaw.com or at 1230 Peachtree Street, Suite 2300, Atlanta, Georgia 30309.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.