ORLANDO, Fla., Dec. 22, 2005 (PRIMEZONE) -- An investor has sued Bio-One Corporation ("Bio-One" or the "Company") in federal court, accusing the nutritional supplement company of issuing materially false and misleading statements to the public, Berman DeValerio Pease Tabacco Burt & Pucillo announced today.
Berman DeValerio (http://www.bermanesq.com) filed the class action December 16, 2005 in the U.S. District Court for the Middle District of Florida, Case No. 05-cv-1859. The complaint seeks damages for violations of federal securities laws on behalf of all investors who purchased Bio-One common stock between February 4, 2004 and May 9, 2005, inclusive (the "Class Period").
To receive a copy of the complaint, you may contact the court, call the firm at (800) 516-9926 or go to http://www.bermanesq.com/pdf/BioOne-Cplt.pdf.
The lawsuit claims that Bio-One and a number of individual defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 ("Exchange Act"), 15 U.S.C. section 78j(b) and 78t, and SEC Rule 10b-5, 17 C.F.R. section 240.10b-5 promulgated thereunder.
According to the complaint, Bio-One filed false and misleading financial reports with the U.S. Securities and Exchange Commission (the "SEC") during the Class Period. Plaintiffs claim these reports failed to disclose that Bio-One did not have the capital, expertise, or personnel to succeed with its business plan of acquiring multiple nutritional supplement companies and had defaulted on a promissory note in connection with its acquisition of Interactive Nutritional International ("INI"). Plaintiffs further claim that Bio-One's former CEO, Armand Dauplaise, used the Company's bank accounts as if they were his own and that the Company failed to disclose the fact that Dauplaise's son was acting as its de facto treasurer.
The complaint focuses on Bio-One's March 31, 2004 acquisition of INI, for which the Company pledged to pay $30 million (Canadian), half in cash and half through a promissory note. Though the Company pledged to begin making monthly installments on the $15 million (Canadian) note July 1, 2004, it never made a single payment, the complaint said. Bio-One did not disclose its failure to make payments on the promissory note, the complaint alleges, even though the Company signed two forbearance agreements and was notified on December 13, 2004 that the note holder planned to seize INI's assets as a result.
The Company belatedly disclosed to the SEC that it had defaulted on the INI promissory note. Following the February announcement, shares of Bio-One began to significantly decline in price. A week later, the Company announced it had fired Dauplaise. The Company, which had traded on the OTC Bulletin Board under the symbol BICO, has since been delisted.
If you purchased Bio-One common stock between February 4, 2004 and May 9, 2005, inclusive, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Michael J. Pucillo, Esq.
Kyle G. DeValerio, Esq.
Esperante Building
222 Lakeview Avenue, Suite 900
West Palm Beach, FL 33401
(561) 835-9400
lawfla@bermanesq.com
If you wish to apply to be lead plaintiff in this action, a motion on your behalf must be filed with the court no later than February 21, 2006. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action, or you may submit information online at http://www.bermanesq.com/Securities/Signup1.asp?caseid=562. Please note, you may also retain counsel of your choice and need not take any action at this time to be a class member.
Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations, and consumer fraud.