HARTFORD, Conn., Sept. 21 /PRNewswire/ -- The law firm of Schatz & Nobel, 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 Middle District of Florida on behalf of all persons who purchased the common stock of Radiation Therapy Services ("Radiation Therapy") between June 17, 2004 and September 8, 2004, inclusive (the "Class Period").
The Complaint alleges that Radiation Therapy and certain of its officers and directors issued materially false statements concerning its initial public offering ("IPO"). Specifically, Radiation Therapy failed to disclose the that: (i) the IPO was purely a liquidity event for management/owners -- not a source of growth capital for the Company because 100% of the IPO proceeds went into the hands of Radiation Therapy's primary shareholders; (ii) the numerous related party transactions by Radiation Therapy increased the risk of its business model running afoul of State and Federal laws governing corporate practice of medicine, fee splitting and physician-referrals; and (iii) organic revenue growth had slowed dramatically and could be further disrupted in January due to changes in the way medical oncologists run their businesses.
On September 9, 2004, Banc of America Securities ("Banc of America") initiated coverage of Radiation Therapy Services with a "sell" rating and an $11 target price. Banc of America said the Company's IPO "was purely a liquidity event for management/owners" and noted that following the IPO management "gifted itself another 5% of the company via new option grants." Banc of America said: "We simply cannot recommend purchasing the stock until the company's board structure (currently four insiders, just three independent directors) and extensive related party relationships are materially overhauled." On this news, Radiation Therapy fell $1.66 per share, or 11.98%, to $12.20 per share.
If you are a member of the class, you may, no later than November 22, 2004 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, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
For more information about the case, its claims, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com. To view a copy of the lawsuit initiating the class action, or for more information about class action cases and Schatz & Nobel, please visit our website: http://www.snlaw.net/.
CONTACT: Nancy A. Kulesa Tel.: (800) 797-5499 Website: http://www.snlaw.net/ e-mail: sn06106@aol.com
Schatz & Nobel, P.C.CONTACT: Nancy A. Kulesa of Schatz & Nobel, P.C., 1-800-797-5499,sn06106@aol.com
Web site: http://www.snlaw.net/
