NEW YORK, Sept. 12, 2003 (PRIMEZONE) -- The following statement was issued today by the law firm of Wechsler Harwood LLP:
Notice is hereby given that a class action lawsuit was filed on behalf of purchasers of the publicly traded securities of DVI, Inc. (Pink Sheets:DVIXQ) (formerly NYSE:DVI) ("DVI" or the "Company") during the period between November 7, 2001 and June 27, 2003, inclusive (the "Class Period").
The action, entitled Bence v. O'Hanlon, et al., 03CV ---- (E.D.Pa. September 11, 2003), is pending in the United States District Court for the Eastern District of Pennsylvania against DVI's former Chief Executive Officer, Michael A. O'Hanlon and DVI's Chief Financial Officer, Steven R. Garfinkel. A copy of the complaint is available from the Court, or can be viewed on the firm's website at www.whesq.com.
The Complaint alleges that defendants 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 November 7, 2001 and June 27, 2003, thereby artificially inflating the price of DVI's publicly traded securities. The Complaint alleges that these statements were materially false and misleading because they failed to disclose and misrepresented the following adverse facts, among others: (1) that the Company had failed to timely write down the value of certain assets which had become impaired; (2) that the Company's accounting and financial reporting policies and procedures for non-systematic (non-recurring) transactions were inadequate; (3) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (4) that as a result, the values of the Company's assets, net income and earnings per share were materially overstated at all relevant times.
The Class Period ends on June 27, 2003. On that date, defendants DVI shocked the investing public when it announced that the SEC had rejected its March 30, 2003 quarterly report because it had not been reviewed by an independent auditor. The Company also disclosed that it was continuing to consider the need for the accounting change, and, if adopted, its net income for the third quarter of fiscal 2003, its earnings per share for the first nine months of fiscal 2003 and its net income for the fiscal year 2002 would all be drastically reduced. Specifically, the Company's net income for the third quarter of fiscal 2003 would be reduced by $1.4 million, or 44.47%, its earnings per share for the nine months ended March 31, 2003 would be reduced by $0.10, or 44.45% and its net income for fiscal year ended June 30, 2002 would be reduced by $1.395 million or 34.12%. Investor reaction was swift and negative, with DVI stock falling from a close of $5.84 on June 26, 2003 to a close of $4.30 on June 27, 2003, or a single-day decline of more than 26% on very high trading volume.
If you purchased securities during the Class Period, you may, no later than September 29, 2003, move to be appointed as a lead plaintiff in this class action. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood or other counsel of your choice to serve as your counsel in this action.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders and has recovered hundreds of millions of dollars in those efforts. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400
Craig Lowther, Wechsler Harwood Shareholder Relations Department: clowther@whesq.com (Ext. 257)
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca