NEW YORK, April 30, 2001 (PRIMEZONE) -- The following announcement was issued by the law firm of Faruqi & Faruqi, LLP:
Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Eastern District of Louisiana on behalf of all purchasers of Orthodontic Centers of America, Inc. ("OCA" or the "Company") (NYSE:OCA) securities between April 27, 2000 and March 15, 2001, inclusive (the "Class Period").
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Besides issuing a series of false and misleading press releases concerning OCA's financial condition, the complaint alleges that the Company improperly recognized revenues in violation of Generally Accepted Accounting Principles ("GAAP"). As a result, the price of the Company's common stock was artificially inflated throughout the Class Period, reaching as high as $35.313 per share, allowing defendant to collectively sell millions of shares in personally held OCA Stock. However, on March 16, 2001 the true state of the Company's finances were revealed when the Company disclosed that as a result of an SEC inquiry, OCA must change its revenue recognition policy to conform to with GAAP. In response, the stock price of OCA plummeted approximately 20% in inter-day trading on heavy trading volume.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired OCA securities between April 27, 2000 and March 15, 2001, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you purchased OCA securities during the Class Period, you may, not later than June 19, 2001, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail (FaruqiLawAV@aol.com)
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca