NEW YORK, May 26, 2004 (PRIMEZONE) -- Wolf Popper LLP has filed a securities fraud class action complaint against Bally Total Fitness Holding Corporation ("Bally" or the "Company") (NYSE:BFT) and certain of its officers and directors, on behalf of all persons who purchased Bally securities on the open market from May 17, 1999, through April 28, 2004 (the "Class Period"). The complaint is available from the U.S. District Court for the Northern District of Illinois and on Wolf Popper's website (www.wolfpopper.com).
The complaint alleges that during the Class Period, defendants materially misrepresented Bally's financial results and performance in press releases, SEC filings and public statements by improperly recognizing revenue relating to non-obligatory, prepaid membership dues in contravention of generally accepted accounting principles and the Company's revenue recognition policy.
Defendants' conduct began to be disclosed to the market on March 11, 2004, when Bally issued a press release announcing its financial results for the fourth quarter and fiscal year ended 2003 and disclosing a change in the Company's accounting practices that would result in non-cash charges of $675 million. Disguised within, and overshadowed by these charges, was the admission that the Company would need to restate $43 million of revenue as of December 31, 2002. Shortly thereafter, Bally announced the resignation of its Chief Financial Officer and that the SEC has commenced an investigation in connection with the Company's recent restatement of its financial results. In reaction to these disclosures Bally shares plummeted.
Wolf Popper has extensive experience representing shareholders in class actions and has successfully recovered billions of dollars for defrauded investors and shareholders. The reputation and expertise of the firm in shareholder and other class action litigation have been repeatedly recognized by the courts, which have appointed the firm to major positions in complex multi-district and consolidated litigations.
Any member of the class (who purchased Bally common stock during the period May 17, 1999, through April 28, 2004, inclusive) who desires to be appointed lead plaintiff in the class action must file a motion with the Court no later than July 26, 2004. Class members must meet certain legal requirements to serve as a lead plaintiff. If you have questions or information regarding this action, or if you are interested in serving as a lead plaintiff, you may call or write:
Ken Chang, Esq., Wolf Popper LLP, 845 Third Avenue, New York, NY 10022-6689 Tel.: 212.451.9667, Toll Free: 877.370.7703; Fax: 212.486.2093, Toll Free: 877.370.7704 Email: irrep@wolfpopper.com; website: www.wolfpopper.com