NEW YORK, July 17, 2003 (PRIMEZONE) -- The law firm of Seeger Weiss LLP announces that a class action lawsuit was filed today in the United States District Court for the Middle District of Florida, Tampa Division, on behalf of all persons who purchased the publicly traded securities of Cryo Cell International, Inc. ("Cryo Cell" or the "Company") (Nasdaq:CCELE), from March 16, 1999 through May 20, 2003, inclusive (the "Class Period"), and who were damaged thereby. A copy of the complaint filed in this action, numbered 8:03-CV-1503-T-30-TBM, is available from the Court.
Cryo Cell is a corporation with its principal place of business located in Clearwater, Florida. Cryo Cell purports that it is engaged in the business of cryogenic cellular storage and the design and development of cellular storage devices. The Company markets that customers should preserve blood taken from their newborns' umbilical cords because the blood is believed to contain a large number of stem cells, which may be useful to the child or another family member later in life to potentially cure diseases.
The complaint alleges that defendants Mercedes Walton, Gerald F. Maas, Mill M. Taymans, Edward Modzelewsik, Frederick C.S. Wilhelm, Wanda D. Dearth, Junior Winokur, Daniel D. Richard, Ronald Richard, Charles D. Nyberg, John v. Hargiss, Cryo Cell International, Inc., Weinick Sanders Leventhal & Co., LLP and Mirsky, Furst & Associates, P.A., violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between March 16, 1999 and May 20, 2003, thereby artificially inflating the price of Cryo Cell securities. During the Class Period, the Company issued statements that failed to disclose and/or misrepresented the following adverse facts, among others: (1) that the Company had materially overstated its earnings, net income and earnings per share; (2) that the Company continually recognized revenue in violation of generally accepted accounting principles ("GAAP") with respect to the following: (a) related-party transactions; (b) revenue sharing agreements; and (c) revenue recognition for the sale of area licenses. As a result of the defendants' actions, the Company's financial results were materially overstated at all relevant times.
On April 15, 2003, Cryo Cell issued a press release disclosing for the first time that it may be necessary to restate its financial results for fiscal years 2001 and 2002 because of improper recognition of revenue. On May 20, 2003, defendants revealed that the Company's new auditor had suddenly resigned, just a short period after it was retained. By May 21, 2003, Cryo Cell stock had lost most of its value, and traded at only $0.94 per share, a steep decline from the stock's Class Period high of over $10 per share in August 2001.
Plaintiff seeks to recover damages on behalf of all Class members and is represented by the law firm of Seeger Weiss LLP. Seeger Weiss LLP maintains offices in New York City and New Jersey and is active in major complex commercial and securities litigations pending in federal and state courts throughout the United States.
If you are a member of the Class described above, you may, not later than August 4, 2003, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact plaintiff's counsel listed below.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca