ORLANDO, Fla., April 18 /PRNewswire/ -- An investor has sued PainCare Holdings, Inc. ("PainCare" or the "Company") in federal court, accusing the Company of securities law violations, Berman DeValerio Pease Tabacco Burt & Pucillo announced today.
Berman DeValerio (http://www.bermanesq.com) filed the class action April 14 in the U.S. District Court for the Middle District of Florida, Orlando Division. The complaint, filed as 06-cv-512, seeks damages for violations of federal securities laws on behalf of all investors who acquired PainCare common stock from August 27, 2002 through and including March 15, 2006 (the "Class Period").
To receive a copy of the complaint, you may contact the court, call the firm at (800) 349-4612 or go to http://www.bermanesq.com/pdf/Paincare-Cplt.pdf.
The lawsuit claims that the Company and two individual defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 ("Exchange Act"), 15 U.S.C. Sections 78j(b) and 78t, and SEC Rule 10b-5, 17 C.F.R. Section 240.10b-5, promulgated thereunder.
Based in Orlando, PainCare delivers pain management solutions including: interventional pain management, minimally invasive spine surgery, orthopedic rehabilitation, ambulatory surgery centers, and diagnostics.
According the plaintiff's complaint, beginning on August 27, 2002 and continuing throughout the Class Period, PainCare issued numerous press releases and filed various filings with the SEC that were materially false and misleading. In particular, the Complaint alleges that the defendants overstated and exaggerated the Company's financial health and earnings. These statements enabled PainCare to acquire $103 million worth of related companies to fuel its continued growth. But unbeknownst to investors, PainCare accounted for its acquisitions in violation of the Generally Accepted Accounting Principles ("GAAP").
On March 15, 2006, the Company announced that it would have to restate all of its financial results -- from its inception in 2000 through the present -- in order to adjust for the improper accounting of its corporate acquisitions.
The market reacted strongly. The first day of trading following the announcement, PainCare's common stock fell 12.6% on extremely heavy volume and was down over 50% from its class period high of $5.25 per share. Since then, PainCare's share price has continued a steady decline, closing at $1.69 per share on March 27, 2006.
If you acquired PainCare common stock from August 27, 2002 through and including March 15, 2006, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
C. Oliver Burt III, Esq. Jay W. Eng, Esq. Esperante Building, Suite 900 222 Lakeview Avenue West Palm Beach, FL 33401 (800) 349-4612 lawfla@bermanesq.com
If you wish to apply to be lead plaintiff in this action, a motion on your behalf must be filed with the court no later than May 19, 2006. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action, or you may submit information online at http://www.bermanesq.com/Securities/Signup1.asp?caseid=570. Please note, you may also retain counsel of your choice and need not take any action at this time to be a class member.
Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations, and consumer fraud. The firm has 34 lawyers in Boston, San Francisco and West Palm Beach.
Berman DeValerio Pease Tabacco Burt & PucilloCONTACT: Jay W. Eng, Esq. of Berman DeValerio Pease Tabacco Burt &Pucillo, +1-800-349-4612
Web site: http://www.Bermanesq.com//
