TALLAHASSEE, Fla., Feb. 14, 2002 (PRIMEZONE) -- Please take notice that the law firm of Collins & Truett, P.A. has commenced a class action lawsuit in the United States District Court for the Northern District of Florida on behalf of all purchasers of Regeneration Technologies, Inc. (Nasdaq:RTIX) during the period from May 2, 2001 and January 31, 2002 (the "Class Period").
A copy of the complaint is available from the Court or from Collins & Truett. Please contact us by phone at (850) 386-6060, by email at rgarrett@collinsfirm.com.
The action charges Regeneration Technologies, Inc. ("Regeneration"), as well as Regeneration's chief financial officer and its vice-president of sales and marketing, with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The violations, as the complaint alleges, stem from the issuance of allegedly false and misleading financial statements and financial projections during the class period, which had the effect -- during the class period -- of artificially inflating the price of Regeneration's shares. The lawsuit seeks to recover losses suffered by individual and institutional investors who purchased Regeneration Technologies' shares during the class period, excluding defendants and their affiliates.
On February 1, 2002, Regeneration issued a press release disclosing a number of surprises concerning the company, including:
(i) that it would be delaying its planned announcement of its financial results for the fourth quarter and full year of 2001;
(ii) that, rather than reporting a profit for the fourth quarter and year of 2001 (as defendants had led the market to expect), Regeneration expected to report a loss for both the fourth quarter and full year of 2001;
(iii) that the delay in releasing these surprising and worse-than-expected financial results was a result of "certain inventory issues that were identified in the process of completing the preparation of (Regeneration's) annual financial statements for the year ended December 31, 2001";
(iv) that release of Regeneration's fourth quarter and full-year financial results could be delayed several weeks "while management completes its evaluation" of the inventory issues;
(v) that Regeneration was also "evaluating whether these issues may affect (Regeneration's) previously reported quarterly financial results"; and
(vi) that Regeneration's Chief Financial Officer and its Vice President for Sales and Marketing had left employment with the company, effective immediately.
After disclosure that Regeneration's current financial results would not be as expected (i.e., a loss rather than a profit), and that previously-reported financial results might not be what they seemed (i.e., an accurate financial summary of the company's operations), Regeneration's shares swiftly lost more than 50% of their value before Nasdaq halted trading in the stock several hours later, falling $5.19 per share (from the previous day's closing price of $10.15 per share) to last trade at $4.96 per share on February 1, 2002.
This lawsuit was commenced by Collins & Truett, P.A., which is working together with counsel that specializes in complex litigation, including securities class actions.
If you are a member of the class described above, you may, no later than April 5, 2002, move the Court to serve as lead plaintiff of the class, if you so choose, pursuant to the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), 15 U.S.C. section 78u-4(a). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. 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 seek appointment as a lead plaintiff. For more information about the case, its claims, and your rights, please contact:
Don Rett, Esq. Ryan Garrett, Esq. COLLINS & TRUETT, P.A. 2804 Remington Green Circle Suite 4 Tallahassee, Florida 32308 Telephone: (850) 386-6060 or Telefax: (850) 385-8220 E-Mail: rgarrett@collinsfirm.com
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More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca