NEW YORK, March 26, 2002 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the District of New Jersey, civil action number 02-1301-MLC, on behalf of all persons or entities, who purchased Medi-Hut Co. Inc. ("Medi-Hut" or the "Company") common stock (Nasdaq:MHUT) between April 4, 2000 through February 4, 2002, both dates inclusive (the "Class Period"). Joseph A. Sanpietro, Laurence M. Simon, Robert Russo, Vincent Sanpietro, James G. Aaron, James S. Vacarro, Lawrence Marasco, and Medi-Hut's auditor Rosenberg Rich Baker Berman & Co. were also named as defendants in the action.
The Complaint alleges that Medi-Hut, a pharmaceutical sales company, and six of its top officers as well as Medi-Hut's auditors misled the investing public during the Class Period through improper accounting practices that seriously distorted the Company's financial results. Specifically, it alleged that Medi-Hut failed to disclose the relationship between its vice president for Sales Marketing, Lawrence Marasco, and Medi-Hut's largest customer, Larval, a company in which Marasco was the sole owner. Sales to Larval accounted for 62% of Medi-Hut's revenues in 2001. Moreover, in auditing the Medi-Hut's financials, the Company's auditors allegedly withheld information to the investing public about the sales to Larval. By failing to disclose these related party transactions, Medi-Hut, its officers, and its auditors allegedly violated generally accepted accounting standards, thereby causing the price of Medi-Hut's shares to be artificially inflated during the Class Period. When the relationship between Medi-Hut, Marasco and Larval was revealed, shares of Medi-Hut fell 51% to $3.29, and as low as $2.27 the following day.
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin & Peckel at, www.rabinlaw.com.
If you purchased Medi-Hut common stock during the Class Period described above, you may, no later than April 29, 2002, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. If you wish to discuss this action further or have any questions concerning this announcement, or your rights or interests, please contact plaintiff's counsel, Eric Belfi or Sharon Lee, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.