BALA CYNWYD, Pa., March 11, 2002 (PRIMEZONE) -- A pending class action charges Dynacq International, Inc. ("Dynacq") (Nasdaq:DYII) with misleading investors about its business and financial condition according to the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the Southern District of Texas (H-02-0377). Plaintiff seeks damages for violations of the federal securities laws on behalf of all investors who purchased Dynacq International, Inc. securities between November 29, 1999 and January 16, 2002 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Dynacq International, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our Website at www.sbclasslaw.com.
The complaint alleges that Dynacq International, Inc. is engaged in the ownership and management of an acute care hospital, the operation of two outpatient surgical facilities, the operation of a medical office complex, the management of physician practices (all located in the Vista medical center campus in Pasadena, Texas) and the business of providing home infusion healthcare services to patients in their homes.
The complaint alleges that during the Class Period, defendants represented that Dynacq's favorable financial results were due to its commitment to quality and cost-effective care. Throughout the Class Period, defendants repeatedly stated that Dynacq's financials were strong and that it was consistently achieving "record results." Defendants actually knew that the quality of Dynacq's balance sheet was eroding, that it was violating federal law in the maintenance of its facilities and that it improperly cared for patients.
On Jan. 16, 2002, TheStreet.com ran an article on Dynacq entitled, "Dynacq's Doubtful Accounts Send Distress Signals." Essentially, the article exposed many of the Company's problems which, in the days that followed, caused the Company's share price to crumble. These disclosures shocked the market, causing Dynacq's stock to decline to less than $15 per share before closing at $15.20 per share on Jan. 17, 2002, on volume of more than 2.6 million shares, and later plummeting to less than $12 per share.
If you purchased Dynacq International, Inc. securities between November 29, 1999 and January 16, 2002, you may be a member of the class and have until April 1, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our Website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca