LITTLE ROCK, Ark., Jan. 11, 2002 (PRIMEZONE) -- The deadline for purchasers of DJ Orthopedics, Inc. ("DJ Orthopedics" or the "Company") (NYSE:DJO) common stock to move for lead plaintiff in a securities fraud class action recently brought against the Company is rapidly approaching.
If you purchased DJ Orthopedics common stock pursuant to the November 15, 2001 initial public offering ("IPO"), 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 Southern District of California by January 29, 2002. A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at www.classlawyer.com/pr/dj_orthopedics.pdf.
The complaint, filed by a client of the Law Firm of Cauley Geller Bowman & Coates, LLP, charges defendants DJ Orthopedics, certain of its officers and directors and its underwriters with violations of the Securities Act of 1933. On November 15, 2001, DJ Orthopedics completed an IPO of 9 million shares of stock pursuant to a Registration Statement/Prospectus. The offering was priced at $17 per share for total proceeds of $153 million. In the Prospectus, the defendants represented that the Company was dependent, in part, on international sales to fuel its revenue growth and profitability.
The complaint alleges that the statements in the Prospectus regarding DJ Orthopedics' international sales and the accompanying risk disclosures regarding DJ Orthopedics' ability to generate such growth were false and misleading and contained material omissions when made. In actuality, by the time of the IPO, DJ Orthopedics had known that its stock price of $17 reflected the defendants' contention that DJ Orthopedics would achieve its Q4 01 earnings estimates. The complaint charges that prior to the IPO, defendants knew that DJ Orthopedics would not achieve its Q4 earnings estimates. Moreover, this information was disclosed to certain of the underwriting defendants' sales people who, as a result of the change in the Company's Q4 projections, declined to support or otherwise purchase the shares in the "after market." Thus, contrary to the representations in the Prospectus and obligations of the defendants, the Prospectus omitted material facts, rendering the Prospectus false and misleading. Public investors who purchased shares traceable to the IPO based on DJ Orthopedics' representations, paying $17 per share for DJ Orthopedics stock, have suffered damages.
If you bought DJ Orthopedics common stock pursuant to the November 15, 2001 IPO, and you wish to serve as lead plaintiff, you must move the Court no later than January 29, 2002. If you are a member of this class, you can join this class action online at www.classlawyer.com/sign_up.html. Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller Bowman & Coates, LLP or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Investor Relations Department: Jackie Addison, Sue Null or Shelly Nicholson P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca