HARTFORD, Conn., June 3, 2008 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Western District of Wisconsin on behalf of all persons who purchased the common stock of TomoTherapy, Inc. ("TomoTherapy" or the "Company") (Nasdaq:TOMO) between February 13, 2008 and April 17, 2008, inclusive (the "Class Period").
The Complaint charges that TomoTherapy and certain of its officers and directors violated federal securities laws by issuing a series of materially false and misleading statements regarding TomoTherapy's revenues and net income. Specifically, defendants concealed the following: (i) a larger percentage of TomoTherapy's revenue backlog at December 31, 2007 and TomoTherapy's new orders received through February 12, 2008 were from for-profit entities which had ordered multi-unit Hi-Art Systems and had scheduled deliveries of the multi-units sequentially throughout 2008 and 2009; (ii) the average selling prices were lower in Q1'08 by approximately 11% than they had been in Q1'07 because Q1'07 sales included a large number of European sales denominated in Euros; (iii) new sales orders from Europe had slowed in Q1'08 through February 12, 2008 and TomoTherapy was experiencing a serious delay in closing European orders; (iv) TomoTherapy's gross margins in Q1'08 were and would continue to be approximately 20% lower than they had been in Q1'07; and (v) TomoTherapy's revenues in Q1'08 would be substantially lower and would not show increased growth from either Q1'07 or Q4'07 and that TomoTherapy would suffer a loss in Q1'08.
If you are a member of the class, you may, no later than July 29, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.