NEW YORK, Dec. 23, 2005 (PRIMEZONE) -- Abbey Gardy, LLP announces that a class action lawsuit was filed in the United States District Court for the Southern District of California on behalf of a class (the "Class") of all persons who purchased or acquired securities of SeraCare Life Sciences, Inc. ("SeraCare" or the "Company")(Nasdaq:SRLSE) between May 3, 2005 and December 19, 2005 inclusive (the "Class Period").
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 during the Class Period thereby artificially inflating the price of SeraCare common stock. The Complaint names as defendants SeraCare, Barry D. Plost, the Company's Chairman, Michael F. Crowley, Jr., the Company's President and Chief Executive Officer, Craig A. Hooson, the Company's CFO, and Robert J. Cresci, a director.
The complaint alleges that throughout the Class Period defendants directly participated in an accounting fraud, which materially overstated the Company's financial results in violation of Generally Accepted Accounting Principles ("GAAP"). Specifically, the complaint charges that throughout the Class Period: (i) defendants used improper revenue recognition policies and practices; (ii) defendants failed to properly account for and value inventory; (iii) defendants failed to prevent certain Board members from exerting undue influence on the financial reporting process of the audit process; and (iv) defendants failed to maintain adequate internal controls and as a result were unable to ascertain the true financial condition of the Company.
On December 20, 2005, the Company announced that the its independent auditors raised concerns with respect to the Company's financial statements, accounting documentation and the ability to rely on representations of the Company's management." Specifically, the auditor questioned certain of the company's revenue-recognition accounting policies, the valuation of the company's inventory and raised concerns regarding the perception that a few members of the board were exerting "undue influence" on the Company's financial reporting. On this news, SeraCare shares fell from $19.30 to $10.04.
If you purchased or otherwise acquired SeraCare securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased SeraCare securities during the Class Period, you may, no later than February 20, 2006 request that the Court appoint you as lead plaintiff.
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 plaintiffs.'' Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Gardy, LLP has been retained to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of over one billion dollars for investors. If you would like to discuss this action or have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact:
Susan Lee Mark C. Gardy, Esq. Abbey Gardy, LLP 212 East 39th Street New York, New York 10016 (212) 889-3700 (800) 889-3701 (Toll Free) Email: Susan Lee at slee@abbeygardy.com