NEW YORK, Sept. 14, 2005 (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 Immucor, Inc. ("Immucor"or the "Company") (Nasdaq:BLUDE) between January 7, 2005 and August 29, 2005, inclusive (the "Class Period").
The action, entitled, Fioretti v. Immucor, Inc., et al., Case No. 1:05-cv-2407, is pending in the United States District Court for the Northern District of Georgia, and names as defendants the Company, Edward L. Gallup, Gioacchino De Chirico, and Steven C. Ramsey. 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 Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that the Company failed to disclose and misrepresented material adverse facts which were known to defendants or recklessly disregarded by them. In particular, the Complaint alleges that during the Class Period, defendants misrepresented that Immucor's financial statements and disclosures fairly and accurately reflected the Company's results of operations as required by Generally Accepted Accounting Principles ("GAAP") and the Exchange Act. The Complaint further charges that defendants' Sarbanes-Oxley certifications during the Class Period were false and misleading, as the Company, knowingly or with severe recklessness, lacked adequate internal controls and failed to keep proper books and records, in violation of its well-publicized Code of Corporate Conduct.
On August 26, 2005, Immucor announced that the SEC issued a Formal Order in the previously reported investigation into issues related to payments made by the Company's Italian subsidiary to individuals associated with government medical facilities. On this news, shares of Immucor fell $1.00 per share, or 3.5 percent, to close at $27.61 per share. Thereafter on August 29, 2005, Immucor announced that it would revise its Fiscal 2005 earnings to account for employee bonus accrual. The Company also reported that it had accepted the resignation of defendant Steven C. Ramsey as Chief Financial Officer of the Company. On this news, shares of Immucor fell $3.54 per share, or 12.85 percent, to close, on August 30, 2005, at $24.00 per share.
During the first six months of 2005, Immucor insiders sold approximately 186,000 shares, for proceeds of about $4,970,000 million. During this time, Defendants led the market to believe that the internal control issue involving the Italian subsidiary was "an isolated event" that was not expected to lead to more than a $350,000 fine and increased investigation expenses that had already been factored into the Company's bottom line. However, this was far from the truth. Immucor's internal control problems, as the market later learned, were not confined to its Italian subsidiary and did not center solely around this alleged "isolated event."
If you are a member of the class described above, you may, not later than October 31, 2005 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
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 Wechsler Harwood LLP.