NEW YORK, Oct. 17, 2005 (PRIMEZONE) -- Wechsler Harwood LLP today announced that it has filed a Federal Securities fraud class action suit on behalf of individuals and entities who purchased or otherwise acquired the publicly traded securities of World Health Alternatives, Inc. ("World Health Alternatives" or the "Company") (Pink Sheets:WHAI), acquiring the stock between June 26, 2003 and August 18, 2005, both dates inclusive (the "Class Period").
The action entitled, Hertel v. World Health Alternatives, Inc., et al., Case No. (not yet assigned), is pending in the United States District Court for the Western District of Pennsylvania and names as defendants, the Company, certain of its senior officers and directors, as well as its independent auditor, Daszkal Bolton LLP. A copy of the complaint can be obtained from the Court or can be viewed on Wechsler Harwood web site at: www.whesq.com.
The complaint charges defendants with violations of the Securities Exchange Act of 1934 and alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the defendants misstated the amount of the Company's outstanding shares; (2) that the defendants failed to properly account for convertible debt and warrant agreements; (3) that defendants underpaid tax liabilities in the amount of $4 million; and (4) that defendants' misstatements to the World Health Alternatives' lenders resulted in $6.5 million in excess funding under the loan agreements.
As a result of this activity, the Company had terminated its outside auditor, Daszkal Bolton, and Defendant McDonald had resigned as CEO. The Company retained outside counsel and the Board of Directors had retained special counsel to assist it with its investigation. The Company would be restating its prior financial statements due to the material misstatements outlined above and has warned investors not to rely on the information contained therein. The Company's restatement announcement shocked the market and the price of its common stock plummeted an astonishing 86% on August 19, 2005, trading as low as $0.25 per share after closing on August 18, 2005 at $1.85 per share. Trading on a volume 15 times greater than its average, on August 19, 2005, 32 million shares changed hands.
If you are a member of the class described above, you may, not later than October 24, 2005, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following: