NEW YORK, July 12, 2002 (PRIMEZONE) -- Wolf Popper LLP has filed a securities fraud class action complaint, on behalf of its client, against Cryolife, Inc. (NYSE:CRY) and two of its senior officers on behalf of purchasers of Cryolife common stock from April 2, 2001 through July 5, 2002, inclusive (the "Class" and the "Class Period"). The complaint is styled: Kurt Kaptur, on Behalf of Himself and All Others Similarly Situated, vs. Cryolife, Inc., Steven G. Anderson, and David Ashley Lee, (the "Complaint") and a copy of the Complaint is available from the U.S. District Court for the Northern District of Georgia, Atlanta Division and on Wolf Popper's website (www.wolfpopper.com).
Plaintiff's complaint alleges violations Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act"), Rule 10b-5 promulgated thereunder, and Section 20(a) of the Exchange Act. These allegations concern false statement made by Cryolife, Inc., Steven G. Anderson, and David Ashley Lee (collectively "Defendants"), during the Class Period concerning Cryolife's purported compliance with FDA requirements for preserving and testing human tissue.
The allegedly false statements defendants are accused of making all concern the safety of Cryolife's cryogenically frozen human tissue products. After being subjected to questioning concerning the safety of its products Defendants reiterated their statements about safety and about compliance with relevant laws and regulations.
The complaint alleges that defendants' statements concerning safety were false and misleading. The true facts were disclosed beginning on June 24, 2002, when Cryolife acknowledged that it had received an FDA warning letter criticizing Cryolife for "significant deviations from the Quality System Regulation (QSR) ... (which) cause your devices to be adulterated ..." The warning letter also stated that the specific violations noted by the FDA "may be symptomatic of serious underlying problems in your firm's manufacturing and quality assurance systems." However, even defendants' June 24, 2002 statements were materially false and misleading and remained uncorrected until July 5, 2002, when defendants acknowledged a further incidence of infection from Cryolife tissue and the existence of a prior undisclosed FDA warning letter.
Disclosure of the FDA warning letter, and the other true facts concerning Cryolife's operating practices, caused Cryolife's common stock to plummet from $26.77 (its closing price on June 18, 2002) to close at $10.50 on July 10, 2002.
Any member of the Class who desires to be appointed lead plaintiff in the class action must file a motion with the Court no later than September 6, 2002. 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 in this action, you may call or write:
Wolf Popper LLP, Robert C. Finkel, Esq. 845 Third Avenue, New York, NY 10022-6689 Tel.: 212.451.9620, Toll Free: 877.370.7703 Fax: 212.486.2093, Toll Free: 877.370.7704 Email: irrep@wolfpopper.com Website: www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.