NEW YORK, April 6, 2006 (PRIMEZONE) -- Wechsler Harwood LLP today announced that it has filed a class action suit on behalf of all securities purchasers of Bausch & Lomb, Inc. (NYSE:BOL) ("Bausch & Lomb" or the "Company") between January 27, 2005 and December 22, 2005, both dates inclusive (the "Class Period").
The action, titled "Badaracco v. Bausch & Lomb, Inc." Case No. 06-CV-2659, is pending in the United States District Court for the Southern District of New York, and names as defendants, Bausch & Lomb, Ronald L. Zarrella, Stephen C. McCluski, John M. Loughlin, Dwain L. Hahs, Angela J. Panzarella, Robert B. Stiles, Kamal Sarbadhikari, Geoffrey F. Ide and William H. Waltrip. A copy of the complaint can be obtained from the Court or can be viewed on Wechsler Harwood web site at: www.whesq.com.
Bausch & Lomb engages in the development, manufacture, and marketing of eye health products. The company offers its products in five product categories: contact lens, lens care, pharmaceuticals, cataract and vitreoretinal, and refractive.
The Complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that, during the Class Period, 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 Brazilian subsidiary engaged in fraudulent management and accounting practices, which resulted in tax assessments against the Company by Brazilian authorities; (2) that the Company's Korean subsidiary engaged in improper sales practices, thereby causing Bausch & Lomb to improperly recognize revenue from such sales; (3) that the Company lacked adequate internal controls; (4) that the Company's financial results were materially inflated at all relevant times; and (5) that the Company's financial results were in violation of Generally Accepted Accounting Principals ("GAAP").
On October 26, 2005, Bausch & Lomb announced that the Company's Audit Committee of the Board of Directors (the "Audit Committee") commenced an independent investigation into allegations of misconduct by the management of the Company's Brazilian subsidiary, BL Industria Otica Ltda. ("BLIO"). The Audit Committee determined that the general manager, the controller and other employees of the Brazilian subsidiary engaged in improper management and accounting practices. On this news, shares of Bausch & Lomb fell $2.74 per share, or 3.7 percent, to close, on October 27, 2005 at $71.36 per share.
On December 22, 2005, Bausch & Lomb provided investors with an update of its investigation into allegations of improper conduct by management of its Brazilian subsidiary and tax assessments against BLIO by Brazilian taxing authorities. The Company had concluded that certain prior-period financial statements will be required to be restated. In addition, the Company had preliminarily identified a material weakness in its controls over financial reporting. Bausch & Lomb also announced that the Audit Committee had commenced an independent investigation into revenue recognition practices in its Korean subsidiary. On this news, shares of Bausch & Lomb fell $7.07 per share, or 8.94 percent, on December 23, 2005, to close at $72.00 per share.
If you are a member of the class described above, you may, not later than May 12, 2006, move the Court to serve as lead plaintiff of the class, if you so choose. 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. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders, employee investors and consumers and is responsible for hundreds of millions of dollars in recoveries. You can obtain a copy of the complaint by visiting the Wechsler Harwood website at http://www.whesq.com or by contacting the firm directly. The Wechsler Harwood website contains detailed information regarding this matter and additional information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact plaintiff's counsel Jeffrey M. Norton at 877-935-7400 (ext. 286) or a firm representative.