NEW YORK, Aug. 1, 2002 (PRIMEZONE) -- A class action Complaint has been filed in the United States District Court for the Northern District of Georgia, civil action number 02 cv 2125, on behalf of all persons or entities who purchased Cryolife, Inc. ("Cryolife" or the "Company") (NYSE:CRY) between April 2, 2001 and July 5, 2002, both dates inclusive (the "Class Period").
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J. 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.
The complaint charges that CryoLife and its officers and directors, Defendants Steven G. Anderson (President, CEO, and Chairman), James C. VanderWyck (Vice President, Regulatory Affairs and Quality Assurance), D. Ashley Lee (Vice President and CFO), and Albert E. Heacox (Vice President, Laboratory Operations), violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making material misrepresentations and/or failing to make material disclosures throughout the Class Period due to their failure to disclose and correct quality control problems in CyroLife's processing of human tissues and heart valves. As a result, CryoLife's Class Period assurances to the investing public that patient safety was of paramount concern to it and that CryoLife complied with applicable governmental processing and quality regulations were also knowingly false when made.
On June 24, 2002 CryoLife issued a press release stating that CryoLife had received its first and only warning letter from the FDA and denying that there was any evidence of fungal infection in the heart valves which had triggered the FDA's second inspection of CryoLife's facilities in March of 2002. On July 5, 2002, CryoLife issued a corrective press release announcing that it had received a prior warning letter from the FDA in 1997, and that it had been notified by the CDC that there was evidence of fungal infection in at least one of the heart valves it had supplied. On July 6, 2002, however, the Wall Street Journal Online reported that CDC disagreed with CryoLife's June 24 and July 5 statements, as a result of a letter the CDC knew CryoLife had received in March 2002 in which evidence of the fungal infection was discussed. The market's reaction to CryoLife's corrective disclosures and to the CDC's disclosure was immedoate: CryoLife's common stock dropped from a high of almost $45 per share during the Class Period and of $23.66 per share just before the disclosure to as low as $9.90 per share on July 10, 2002.
In addition, the complaint alleges that CryoLife misrepresented its 2001 income and earnings during the Class Period, in violation of generally accepted accounting principles ("GAAP"), overstating both income and earnings per share by approximately 20%. The Company admitted that its previously issued financial statements were false in a March 29, 2002 press release, which announced that the Company had restated its reported financial results for 2001.
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 LLP at www.rabinlaw.com.
If you purchased Cryolife during the Class Period described above, you may, no later than September 6, 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. Contact plaintiffs' counsel Eric J. Belfi or Sharon Lee of Rabin & Peckel LLP to further discuss this action, this announcement, or your rights or interests.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca