WASHINGTON, March 29 /PRNewswire/ -- Klafter & Olsen LLP has been retained to commence a securities fraud class action against PainCare Holdings, Inc. (“PainCare” or the “Company”) and certain of its officers in the U.S. District Court for the Middle District of Florida, Orlando Division, on behalf of investors who purchased the publicly traded securities of PainCare during the period from August 27, 2002 through March 15, 2006 (the “Class Period”). As described below, if you purchased PainCare publicly traded securities during the Class Period, you have until May 19, 2006 to move to be appointed as a Lead Plaintiff.
PainCare operates as a specialized, professional health services organization that comprises various neuro and orthopedic surgeons, physiatrists, and pain management specialists. In addition, the company owns and operates nine ambulatory surgery centers. The claims concern defendants’ improper accounting practices which materially overstated the Company’s financial results in violation of Generally Accepted Accounting Principles (“GAAP”). Defendants thereby artificially inflated the Company’s stock price which enabled the Company to complete numerous acquisitions of related companies during the Class Period. The claims center on defendants’ material overstatement of PainCare’s financial results by improperly accounting for its numerous acquisitions and certain other non-cash expenses. As a result of these violations, and an investigation by the SEC, the Company is restating its financial results for fiscal years 2000 through 2005.
On March 15, 2006, defendants shocked the market by revealing the restatement. 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. In response to this news, PainCare’s stock price dropped by nearly 13% on unusually large trading volume. PainCare’s stock price has plunged more than 50% from the stock’s Class Period high.
This action will seek to recover damages due to the artificial inflation of, and subsequent decline in, PainCare’s stock price caused by defendants’ violations of the federal securities laws on behalf of all purchasers of PainCare publicly traded securities during the Class Period. If you purchased PainCare publicly traded securities during the Class Period (August 27, 2002 through March 15, 2006), you may, no later than May 19, 2006 move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. If you have sustained losses on your purchases of PainCare publicly traded securities during the Class Period, please contact Klafter & Olsen LLP at http://www.klafterolsen.com or call us at 202/261-3553 for a more thorough explanation of the Lead Plaintiff selection process and the claims that can be asserted against PainCare.
Klafter & Olsen LLP has extensive expertise in prosecuting investor class actions involving financial fraud and has offices in Washington D.C. and New York. Please visit our website for more information about the Firm.
Klafter & Olsen LLP
CONTACT: Kurt B. Olsen of Klafter & Olsen LLP, +1-202-261-3553
Web site: http://www.klafterolsen.com/
