NEW YORK, Sept. 27, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit in the United States District Court for the Western District of Pennsylvania on behalf of shareholders who purchased or otherwise acquired the securities of World Health Alternatives, Inc. ("World Health" or the "Company") (Pink Sheets:WHAI) between June 26, 2003, and August 18, 2005, inclusive (the "Class Period").
The complaint charges World Health, Richard E. McDonald, John C. Sercu, Marc D. Roup, and Daszkal Bolton LLP with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's financial statements were not prepared in accordance with GAAP and in accordance with the federal securities laws and SEC regulations concerning fair reporting; (2) that the Company had violated GAAP policies through artificially inflating its operating results and, in particular, by misrepresenting the Company's earnings per share, understating its tax liability and thus overstating its net income; and (3) that the Company's internal controls were significantly lacking.
As a result of this activity, the Company had terminated its outside auditor, Daszkal Bolton LLP, and Defendant McDonald had resigned as CEO. The Company retained outside counsel and the Board of Directors had retained special counsel to assist it with its investigation. The Company would be restating its prior financial statements due to the material misstatements outlined above and has warned investors not to rely on the information contained therein. The Company's restatement announcement shocked the market and the price of its common stock plummeted an astonishing 86% on August 19, 2005, trading as low as $0.25 per share after closing on August 18, 2005 at $1.85 per share. Trading on a volume 15 times greater than its average, on August 19, 2005, 32 million shares changed hands.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired World Health securities between June 26, 2003 and August 18, 2005, and sustained damages, you may, no later than October 24, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as a lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi, Christopher S. Hinton or Bradley P. Dyer of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.