ATLANTA, Sept. 5, 2003 (PRIMEZONE) -- Chitwood & Harley announces that it has filed a class action lawsuit in the United States District Court for the Southern District of New York, on behalf of all purchasers of securities of Impath, Inc., ("Impath" or the "Company"), (Nasdaq:IMPH), between February 21, 2001 and July 29, 2003, inclusive (the "Class Period"). The suit is brought against Impath, Inc., Anu D. Saad, Richard Adelson, David J. Cammarata, James V. Agnello and Carter H. Eckert. The deadline for filing lead plaintiff papers is September 29, 2003. The civil action number is 03-CV-6703. A copy of the complaint is available on our website www.classlaw.com. If you have questions about this case or wish to inquire about representation, you may contact us through our website by clicking on Impath, or by emailing or calling Jennifer Morris at jlm@classlaw.com or 1-888-873-3999 ext 6883.
Throughout the Class Period, defendants issued statements, press releases, and filed quarterly and annual reports with the SEC describing the Company's business operations and financial condition. Plaintiff charges that these representations were materially false and misleading because they failed to disclose that throughout the Class Period, the Company had materially misstated its operating earnings and assets. On July 30, 2003, Impath shocked the market when it issued a press release announcing that it had initiated an investigation into the possible overstating of its accounts receivables. The Company stated that it believed the impact of the overstatement would be "material" and that "investors should not rely on the consolidated financial statements or the independent auditors reports, where applicable, contained in the Company's previously filed periodic reports, including those set forth in the Company's Annual Reports on Form 10-K for 2002 and prior periods, and the most recently filed Quarterly Report on Form 10-Q for the period ended March 31, 2003."
In addition, the Company announced that while it was reviewing the carrying value of its GeneBank asset, the Company discovered discrepancies relating to the amounts capitalized to date on this asset. As a result, the Company would likely incur a one-time charge as it wrote down the value of the asset to more accurately reflect its true value. The Company also announced the resignations of its Vice President of Finance and its Corporate Controller effective immediately. The stock immediately stopped trading, with the last closing price being $18.09 on July 29, 2003. It resumed trading on August 27, 2003, trading as low as $1.00 per share, to close at $2.15 on extremely heavy trading volume.
The deadline to file lead plaintiff papers, for those class members wishing to serve in this capacity, is September 29, 2003. There are certain legal requirements to serve as lead plaintiff, which we would be happy to discuss with you. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to remain an absent class member. If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact Lauren Antonino or Jennifer Morris at 1-888-873-3999 (toll-free) or by e-mail at jlm@classlaw.com. You may also contact us through our website, www.classlaw.com, by clicking on Impath.
Chitwood & Harley LLP is a class action firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States and has been instrumental in recovering billions of dollars on behalf of its clients. Clients and courts alike have praised the results achieved by Chitwood & Harley. Recently, the federal judge in In re BankAmerica Securities Litigation, which resulted in the highest recovery last year in a securities class action, commented favorably on counsel's performance stating: "Class members were well served by experienced attorneys who, through considerable time and effort, obtained a significant recovery for their clients," and, "(a)s the Court has remarked throughout this litigation, class counsel ... have performed at exceptionally high levels, and all parties have been exceedingly well represented."
For more information about Chitwood & Harley, please visit our website at www.classlaw.com or contact Jennifer Morris at 1-888-873-3999 (toll-free), by e-mail at jlm@classlaw.com or at 1230 Peachtree Street, Suite 2300, Atlanta, Georgia 30309.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca