NEW YORK, August 6, 2003 (PRIMEZONE) -- The law firm of Seeger Weiss LLP announces that a class action lawsuit was filed on August 6, 2003 in the United States District Court for the Southern District of New York on behalf of all persons who purchased the publicly traded securities of IMPATH Inc. ("IMPATH" or the "Company") (Nasdaq:IMPH), from April 25, 2001 to July 29, 2003, inclusive (the "Class Period"), and who were damaged thereby. A copy of the complaint filed in this action is available from the Court or by contacting counsel below.
IMPATH describes itself as "the Cancer Information Company." The Complaint alleges that defendants Carter Eckert, James Agnello, David Cammarata, Richard P.Adelson, Anu D. Saad, and the Company, 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 April 25, 2001 and July 29, 2003, thereby artificially inflating the price of the Company's securities.
The Complaint also alleges that the Company's press releases and periodic SEC filings were materially false and misleading because they failed to disclose that the Company had materially overstated its accounts receivable and improperly capitalized a material asset, resulting in artificially inflated reported financial results and condition during the Class Period. On July 30, 2003, prior to the opening of regular trading, IMPATH issued a press release announcing that its audit committee had begun an investigation into possible "accounting irregularities" by IMPATH and that the Company believes it has overstated its accounts receivable and had been improperly capitalizing one of its assets. As a result of these developments, IMPATH warned that a restatement of previously filed financial reports was "likely," and that the Company has advised its creditors that its financial reports "may have been inaccurate as a result of these issues."
The Company's financial statements during the Class Period, all of which were implicitly or explicitly represented to have been prepared in conformity with generally accepted accounting principles ("GAAP"), it is alleged in the Complaint, were materially false and misleading because the defendants had caused the Company to materially overstate its accounts receivable and improperly capitalize a material asset in its publicly issued financial statements. As a result, the Company's shareholders have sustained tremendous losses.
In response to IMPATH's announcement, the Nasdaq stock market has halted trading in IMPATH common stock and announced that trading will not resume until IMPATH provides Nasdaq with additional information.
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 September 29, 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.