LOS ANGELES, June 14, 2002 (PRIMEZONE) -- Notice is hereby given that Glancy & Binkow LLP commenced the first Class Action lawsuit in the United States District Court for the Southern District of Florida on behalf of a class (the "Class") consisting of all persons who purchased securities of Applied Digital Solutions, Inc. ("Applied Digital" or the "Company") (Nasdaq:ADSXE) between February 11, 2000 and May 10, 2002, inclusive (the "Class Period").
If you are a member of the Class described above, you may move the Court, not later than July 23, 2002, to serve as lead plaintiff; however, you must meet certain legal requirements. 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 Michael Goldberg, Esquire, of Glancy & Binkow LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
The Complaint charges Applied Digital and certain of its officers and directors with violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and rule 10b-5 of the Securities and Exchange Commission. Among other things, plaintiff claims that defendants disseminated a series of materially false and misleading statements regarding the nature of Applied Digital's revenue recognition practices and the lack of proper accounting controls at certain of the Company's subsidiaries. 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. The Complaint charges that defendants were in possession of materially adverse information about the Company's improper accounting practices but failed to disclose the information to investors for more than two years, causing Applied Digital's stock price to become artificially inflated, inflicting enormous damages on investors.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy & Binkow LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca