RADNOR, Pa., Sept. 1 /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 Western District of Pennsylvania on behalf of all securities purchasers of World Health Alternatives, Inc. ("World Health" or the "Company") between June 26, 2003 and August 18, 2005 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 info@sbclasslaw.com.
The complaint charges World Health, Richard E. McDonald, John C. Sercu, Marc D. Roup, and Daszkal Bolton LLP with violations of the Securities Exchange Act of 1934. 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 defendants misstated the amount of the Company's outstanding shares; (2) that the defendants failed to properly account for convertible debt and warrant agreements; (3) that defendants underpayed tax liabilities in the amount of $4 million; and (4) that defendants' misstatements to the Company's lenders resulted in $6.5 million in excess funding under the loan agreements.
As a result of this activity, the Company had terminated its outside auditor, Daszkal Bolton LLP, and Defendant McDonald had resigned as CEO. The Company retained outside counsel and the Board of Directors had retained special counsel to assist it with its investigation. The Company would be restating its prior financial statements due to the material misstatements outlined above and has warned investors not to rely on the information contained therein. The Company's restatement announcement shocked the market and the price of its common stock plummeted an astonishing 86% on August 19, 2005, trading as low as $0.25 per share after closing on August 18, 2005 at $1.85 per share. Trading on a volume 15 times greater than its average, on August 19, 2005, 32 million shares changed hands.
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 http://www.sbclasslaw.com.
If you are a member of the class described above, you may, not later than October 24, 2005 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 info@sbclasslaw.com
Schiffrin & Barroway, LLPCONTACT: Darren J. Check, Esq., or Richard A. Maniskas, Esq., of Schiffrin& Barroway, LLP, +1-888-299-7706 (toll free), or +1-610-667-7706, orinfo@sbclasslaw.com
Web site: http://www.sbclasslaw.com//
