NEW YORK, June 2, 2008 (PRIME NEWSWIRE) -- Roy Jacobs & Associates announces that a class action lawsuit has been commenced in the United States District Court, Western District of Wisconsin, on behalf of purchasers of the common stock of TomoTherapy, Inc. ("TOMO" or the "Company") (Nasdaq:TOMO) from February 13, 2008 through April 17, 2008 (the "Class Period"), alleging claims for securities fraud.
For further information, please contact Roy L. Jacobs, Esq. toll-free at 1-888-884-4490 or by e-mail to rjacobs@jacobsclasslaw.com.
The complaint charges TOMO and its Chief Executive Officer Thomas R. MacKie with violations of the Federal Securities Laws. TOMO develops, markets and sells the Hi-Art system, a radiation therapy system for the treatment of various types of cancer. As alleged in the complaint, defendants concealed in their February press release that (a) a larger percentage of TOMO's revenue backlog at December 31, 2007 and TOMO's new orders received through February 12, 2008 were from for-profit entities which had ordered multi-unit Hi-Art Systems and had scheduled deliveries of the multi-units sequentially throughout 2008 and 2009; (b) the average selling prices were lower in Q1'08 by approximately 11% than they had been in Q1'07 because Q1'07 sales included a large number of European sales denominated in Euros; (c) new sales orders from Europe had slowed in Q1'08 through February 12, 2008 and TOMO was experiencing a serious delay in closing European orders; (d) TOMO's gross margins in Q1'08 were and would continue to be approximately 20% lower than they had been in Q1'07; and (e) TOMO's revenues in Q1'08 would be substantially lower and would not show increased growth from either Q1'07 or Q4'07 and that TOMO would suffer a loss in Q1'08. Shortly after the February release, director Neis sold approximately 917,621 shares of TOMO common stock during February 26, 2008 through March 14, 2008.
We are also investigating an expansion of the class period to include the October 10, 2007, share offering (the "Offering") where selling shareholders sold 8.5 million TomoTherapy shares to the investing public at $22.25 per share, including 4.4 million shares sold by Company officers and directors. If you bought shares in the Offering and suffered a loss, you may recover your losses from defendants without having to prove fraud.
If you purchased TomoTherapy shares in the Offering which closed on or about October 10, 2007, or in the open market from October 10, 2007 through April 17, 2008, and are interested in discussing your rights free of charge, please contact Roy L. Jacobs. You may qualify to serve as Lead Plaintiff on behalf of the Class. All motions for appointment as Lead Plaintiff must be filed by July 29, 2008.