NEW YORK, Aug. 26, 2004 (PRIMEZONE) -- Wechsler Harwood LLP today announced that it has filed a Federal Securities fraud class action suit on behalf of all purchasers of the common stock of Biolase Technology, Inc. (Nasdaq:BLTI) ("Biolase" or the "Company") from October 29, 2003 through July 16, 2004, both dates inclusive (the "Class Period").
The action, entitled Olsen v. Biolase Technology, Inc., et al., Case No. 04-CV-7070 (JYL), is pending in the United States District Court for the Central District of California, Western Division, and names as defendants, the Company, its President and Chief Executive Officer (until his resignation), Jeffrey W. Jones, and its Vice President and Chief Financial Officer, Edson J. Rood. A copy of the complaint can be obtained from the Court or can be viewed on Wechsler Harwood web site at: www.whesq.com.
The complaint charges defendants with violations of the Securities Exchange Act of 1934. More specifically, the complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the demand for the Company's core product, Waterlase, was severely lagging because sales of the Company's newer lower- priced "entry level" laser not only confused the marketplace but cannibalized sales of Waterlase; (2) that international sales growth was severely slowing despite the Company's attempts to ramp it up; (3) that receivables were rising due to the Company's continual unloading of inventory unto wholesalers; (4) that as a consequence of the foregoing the Company was improperly recognizing revenue, in violation of Generally Accepted Accounting Principles ("GAAP"); and (5) therefore, the Company's financial results were materially inflated at all relevant times.
On July 16, 2004, Biolase announced preliminary results for the second quarter ended June 30, 2004 and lowered guidance for the second half of the year. News of this shocked the market. Shares of Biolase fell $3.27 per share or 27.14 percent on July 19, 2004, to close at $8.78 per share.
If you are a member of the class described above, you may, not later than October 5, 2004, move the Court to serve as lead plaintiff of the class, if you so choose. 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. 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
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca