MINNEAPOLIS, May 2, 2006 (PRIMEZONE) -- Lockridge Grindal Nauen P.L.L.P. commenced a class action lawsuit in the United States District Court for the Middle District of Florida on behalf of a class (the "Class") of all persons who purchased or acquired securities of PainCare Holdings Inc. ("PainCare" or the "Company") (AMEX:PRZ) between August 27, 2002 and March 15, 2006 inclusive (the "Class Period").
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, by issuing a series of material misrepresentations to the market during the Class Period, thereby artificially inflating the price of PainCare securities.
On March 15, 2006, the Company announced that as a result of on-going discussions with the SEC concerning accounting irregularities, it will restate all of its historical financial statements for the years 2000-2004, and the quarters ended March 31, 2005, June 30, 2005 and September 30, 2005. On this news, PainCare's stock plunged to as low as $2.50 per share on the first day of trading following the announcement. According to the Complaint, the true facts, which were known or recklessly disregarded by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Defendants knew or recklessly disregarded material adverse information about the Company's financial results and then existing business condition; (b) as a result, the Company's projections and reported results were based upon defective assumptions and/or manipulated facts; and (c) the Company's financial statements were materially misstated due to the fact that PainCare failed to properly account for expenses and consistently overstated earnings. The Complaint alleges that defendants engaged in these improper accounting practices to bolster its stock price in order to complete numerous acquisitions of related pain care companies during the Class Period.
If you purchased or otherwise acquired PainCare securities during the Class Period, you may wish to join in the action to serve as lead plaintiff. You are not required to serve as lead plaintiff in order to participate in the class action. If you purchased PainCare securities during the Class Period, you may, no later than May 19, 2006, request that the Court appoint you as lead plaintiff. If you have questions about the lawsuit or would like to discuss it with an attorney, please call or e-mail:
Karen H. Riebel, Esq. (khriebel@locklaw.com) Lockridge Grindal Nauen P.L.L.P. 100 Washington Avenue South, Suite 2200 Minneapolis, MN 55401 (612) 339-6900
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca