CHICAGO, June 16, 2004 (PRIMEZONE) -- The deadline for purchasers of Bally Total Fitness Holding Corporation (NYSE:BFT) ("Bally's" or the "Company") to move for lead plaintiff in a securities fraud class action brought by Much Shelist against Bally's and certain of its officers and directors is rapidly approaching. If you purchased Bally's securities between August 3, 1999 and April 28, 2004, inclusive ("Class Period") and you wish to be a lead plaintiff in the case, you must move to serve as lead plaintiff by filing a motion in the United States District Court for the Northern District of Illinois by July 26, 2004.
If you wish to discuss your rights and interests, or if you have information relevant to the lawsuit, you may contact Carol V. Gilden or Conor R. Crowley at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to Bally's.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing a series of materially false and misleading statements to the public which described the Company's improving financial performance. As alleged in the complaint, these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (i) the Company had violated Generally Accepted Accounting Principles ("GAAP") and its own internal policies by prematurely recognizing revenue on certain non-obligatory prepaid membership dues; (ii) the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and, (iii) as a result, the value of the Company's reported revenues during the Class Period was materially overstated.
On April 28, 2004, the Company issued a press release announcing that its Chief Financial Officer and Director, John W. Dwyer, had resigned and that the Securities and Exchange Commission had commenced an investigation in connection with the Company's announced restatement regarding the timing of recognition of certain prepaid dues. The Company also stated that it had modified its existing internal controls structure, and believes it is now effective. In response to these disclosures, shares of Bally's common stock fell approximately 17%, to close at $4.50 per share, on extremely heavy trading volume.
If you bought Bally's publicly traded securities between August 3, 1999 and April 28, 2004, inclusive, and if you meet certain other legal requirements, you may file a motion with the Court to serve as a lead plaintiff. You must file your motion no later than July 26, 2004. 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. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.