ST. PAUL, Minn., May 10, 2004 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Northern District of Texas, 4-04CV-341-A, on behalf of all persons or entities who purchased or otherwise acquired Abatix Corporation ("Abatix" or the "Company") securities (Nasdaq: ABIX) between April 14, 2004 at 5:05 p.m. EST to April 16, 2004, at 9:27 a.m. EST, both times inclusive (the "Class Period"). The Complaint names Terry Shaver, Frank Cinatl IV, and the Company as defendants.
The Complaint alleges that defendants violated the Securities Exchange Act of 1934 by making a series of materially false and misleading statements concerning the Abatix's business agreement with Goodwin Group LLC during the Class Period. Specifically, the Complaint alleges that Abatix knew but failed to disclose certain material facts, including that: (i) the Company had not verified the proprietary nature of RapidCool or that the Company had in fact, obtained the "exclusive worldwide rights to distribute RapidCool;" (ii) that Abatix had not verified that Goodwin Group LLC was the assignee of patents relating to RapidCool products, nor had defendants verified the ownership of any patent applications filed with respect to the product line; and (iii) defendants knew but failed to disclose that they had only been permitted to perform limited due diligence on the proprietary nature of RapidCool products before signing the distributorship agreement. As a result, the price of the Company's securities were artificially inflated during the Class Period. On April 21, 2004, the Company admitted that Abatix's April 14, 2004 press release announcing the signing of an agreement with Goodwin Group LLC to distribute the RapidCool (TM) product line created a significant increase in the price and volume of shares traded, "which the Abatix believes was not warranted by Company developments."
As a result of defendants' false and misleading statements the price of Abatix securities was artificially inflated throughout the Class Period, causing plaintiff and the other members of the Class to suffer damages.
If you purchased or otherwise acquired Abatix securities during the Class Period described above, you may, no later than June 22, 2004, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements.
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 of whether to serve as a lead plaintiff.
If you wish to discuss this case or have any questions concerning these cases or your rights or interests, please contact: Garrett D. Blanchfield of Reinhardt Wendorf & Blanchfield at 800-465-1592 or 651-287-2100, via facsimile 651-287-2103 or via email at g.blanchfield@rwblawfirm.com. For information about Reinhardt Wendorf & Blanchfield, visit our website at www.rwblawfirm.com.