NEW YORK, June 13, 2002 (PRIMEZONE) -- Kirby McInerney & Squire, LLP has filed a class action lawsuit in the U.S. District Court for the Southern District of Florida on behalf of those who purchased shares of Applied Digital Solutions, Inc. ("Applied Digital" or the "Company") (Nasdaq:ADSXE) between February 11, 2000 and May 10, 2002, inclusive (the "Class Period"). A copy of the complaint is available from the Court or from Kirby McInerney & Squire (see our Website at www.kmslaw.com/new_cases/applied_digital/applied_digital.htm. Please contact us by phone at (888) 529-4787 or by email at obraun@kmslaw.com.
The complaint alleges that Applied Digital and its Chief Executive Officer violated the federal securities laws by issuing false and misleading statements during the Class Period. Contrary to their positive statements, defendants -- according to the complaint -- were in possession of materially adverse information regarding the Company's lack of proper accounting controls and improper revenue recognition at certain subsidiaries, but failed to disclose this information to investors for more than two years.
On April 18, 2002, Applied Digital disclosed that during the fiscal year ended December 31, 2001, one of the Company's subsidiaries had been recognizing revenue without "evidence of customer acceptance prior to the recognition of certain revenue." The Company also disclosed that during the fiscal year ended December 31, 2000, a second subsidiary of Applied Digital "lacked monitoring controls over its accounts receivable and was unable to provide certain detailed inventory listings for certain general ledger balances." The April 18, 2002 disclosure of the Company's accounting irregularities caused the price of Applied Digital stock to plummet 40%. Approximately three weeks later, on May 9, 2002, defendants claimed that nearly every major hospital in the West Palm Beach, Florida area would be equipped with VeriChip scanners, an indispensable component of the Company's VeriChip technology. However, one day later on May 10, 2002, the truth was disclosed that no hospital had accepted a scanner, an essential device for retrieving the VeriChip's information. Following the May 10, 2002 disclosure, the price of Applied Digital stock again fell sharply, dropping nearly 30% in a single day.
Kirby McInerney & Squire, LLP specializes in complex litigation, including securities class actions. Kirby McInerney & Squire has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in published decisions. More information about the firm, class actions in general, or about the role of the lead plaintiff in a securities class action can be obtained at Kirby McInerney & Squire's Website at http://www.kmslaw.com.
Investors who purchased Applied Digital common stock during the period February 11, 2000 through May 10, 2002 may, no later than July 23, 2002, move the Court to serve as lead plaintiff of the proposed class, if they so choose. In order to serve as lead plaintiff, however, an investor must meet certain legal requirements, as set out in the Private Securities Litigation Reform Act of 1995. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Class members need not, however, seek appointment as lead plaintiff in order to share in any recovery resulting from this litigation.
For more information contact Ira M. Press, Esq. or Orie Braun at (888) 529-4787 or obraun@kmslaw.com or visit our Website http://www.kmslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca