HOUSTON, Jan. 16, 2004 (PRIMEZONE) -- Emerson Poynter LLP, a Houston, Texas based securities class action trial law firm, announced today that a class action lawsuit has been filed in the United States District Court for the Southern District of Texas, Houston Division, on behalf of all those who purchased or acquired the securities of Dynnacq Healthcare, Inc. ("DYIIE" or the "Company") (Nasdaq:DYIIE) and formerly (Nasdaq:DYII) During the period from January 14, 2003 and December 18, 2003, inclusive (the "Class Period"). The Complaint names Dynacq healthcare, Inc., Philip S. Chan, and Chiu M. Chan as defendants. A copy of the complaint can be obtained from the Court or by making a toll-free call to the Firm.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, John G. Emerson, at Emerson Poynter LLP, 830 Apollo Lane, Houston, TX 77058, by e-mail at shareholder@emersonfirm.com or by making a toll-free phone call to (800) 663-9817. The Firm may also be reached by phone at (281) 488-8854 and by facsimile at (281) 488-8867.
The Complaint alleges, 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).
The true facts were first revealed beginning on December 2, 2003, when 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.
Emerson Poynter has substantial experience representing investors in securities fraud class actions, in representing employees and former employees in pension plan litigation, and in cases seeking to implement improved corporate governance and controls. The firm has offices in Houston, Texas and Little Rock, Arkansas, but represents clients throughout the Nation. If you have any questions about how you may be able to recover for your losses in this case, you are encouraged to call toll free or e-mail the firm.
If you purchased or otherwise acquired Dynacq securities during the Class Period described above, you may, no later than February 24, 2004, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. Contact plaintiff's counsel John G. Emerson of Emerson Poynter LLP to further discuss this action, this announcement, or your rights or interests.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca