HARTFORD, Conn., April 3, 2008 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Massachusetts on behalf of all persons who purchased securities of Candela Corporation ("Candela" or the "Company") (Nasdaq:CLZR) between February 1, 2006 and August 21, 2006, inclusive (the "Class Period").
The Complaint charges that Candela and certain of its officers and directors violated federal securities laws by issuing materially false and misleading statements regarding the Company's business and financial results. Specifically, Defendants concealed the following from investors: (i) Candela was quickly losing market share to competitors as it lacked a competitive multi-configuration/multi-application device; (ii) that the Company had received communications from Palomar Medical Technologies, Inc. ("Palomar") regarding the alleged infringement of Palomar's patents by Candela, which was material information for investors as Palomar had made it a pattern and practice of suing the cosmetic laser industry for infringement and had successfully forced numerous competitors to license its technology and, at a minimum, the prospect of patent litigation presented increased costs to the Company; and (iii) based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its earnings and prospects.
On August 21, 2006, after the close of the market, Candela issued a press release announcing its financial results for its fourth fiscal quarter and fiscal year 2006. For the fourth quarter, the Company reported net income of $0.10 per share - far below analysts' earnings expectations of $0.23 per share. In response to the announcement, the price of Candela stock fell from $14.49 per share to $10.33 per share.
If you are a member of the class, you may, no later than June 2, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
While Schatz Nobel Izard P.C. has not filed a lawsuit against the Defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.