Shareholder Class Action Filed Against PainCare Holdings, Inc. By The Law Firm Of Schiffrin & Barroway, LLP

RADNOR, Pa., March 23 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:

Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Middle District of Florida on behalf of all securities purchasers of PainCare Holdings, Inc. ("PainCare" or the "Company") from August 27, 2002 through March 15, 2006, inclusive (the "Class Period").

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at

The complaint charges PainCare and certain of its officers and directors with violations of the Securities Exchange Act of 1934. PainCare describes itself as a leading provider of cost-effective, high-tech pain relief. The Company has established and is aggressively expanding a highly specialized, professional health services organization that is comprised of neuro- and orthopedic surgeons, physiatrists and pain management specialists. PainCare's medical professionals offer pain sufferers a wide range of modalities including interventional pain management, minimally invasive spine surgery and orthopedic rehabilitation. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company materially overstated its financial results by improperly accounting for its numerous acquisitions and certain other non-cash expenses; (2) as such, the Company's financial results were in violation of GAAP; (3) that the Company lacked adequate internal controls; and (4) that as a result of the foregoing, the Company's financial results were materially inflated at all relevant times.

On March 15, 2006, the Company announced that it would not be filing an annual report on Form 10-K for the fiscal year 2005 and that its financial filings for the years 2000 through 2004 and the first three quarters of 2005 were not in compliance with GAAP and would have to be restated. According to the Company's March 15 announcement, PainCare estimates that the total restatement for the years 2000 to 2004 would be a net negative $23.5 million to earnings. This is significant since the Company's previously reported earnings during that period was $7.4 million. On news of this, shares of PainCare, which had already been in decline, dropped by 12.5%, on very heavy trading, to a closing price of $2.50 per share. Within one week of the corrective disclosure, the Company's stock price sank to $1.41 per share by March 21, 2006, losing about 50% in value.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit

If you are a member of the class described above, you may, not later than May 19, 2006, 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 Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.

CONTACT: Schiffrin & Barroway, LLP Darren J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll-free) or 1-610-667-7706 Or by e-mail at

Schiffrin & Barroway, LLP

CONTACT: Darren J. Check, Esq. or Richard A. Maniskas, Esq., Schiffrin &Barroway, LLP, +1-888-299-7706, +1-610-667-7706 or

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