NEW YORK, Aug. 1, 2002 (PRIMEZONE) -- On July 12, 2002, Wolf Popper LLP filed a securities fraud class action complaint against Cryolife, Inc. (NYSE:CRY) and two of its senior officers on behalf of purchasers of Cryolife common stock from April 2, 2001 through July 5, 2002, inclusive. A copy of the complaint is available from the U.S. District Court for the Northern District of Georgia and on Wolf Popper's website (www.wolfpopper.com). Wolf Popper LLP is continuing its investigation into Cryolife's misconduct.
The Plaintiff alleges in the class action that during the class period (April 2, 2001 through July 5, 2002) defendants misrepresented that Cryolife was in compliance with FDA requirements for preserving and testing human tissue. The true facts were disclosed beginning June 24, 2002, when Cryolife acknowledged that it had received an FDA warning letter criticizing Cryolife for "significant deviations from the Quality System Regulation (QSR) .(which) cause your devices to be adulterated ..." The warning letter also stated that the specific violations noted by the FDA "may be symptomatic of serious underlying problems in your firm's manufacturing and quality assurance systems." However, even defendants' June 24, 2002 statements were materially false and misleading and remained uncorrected until July 5, 2002, when defendants acknowledged a further incidence of infection from Cryolife tissue and the existence of a prior undisclosed FDA warning letter.
Defendants acknowledged on July 23, 2002 that Cryolife's operating results for the second quarter had been impacted by events relating to the disclosure of the FDA warning letter, and that revenues for the third and fourth quarters of 2002 also would be below earlier expectations. Disclosure of the FDA warning letter, and the other true facts concerning Cryolife's operating practices, caused Cryolife's common stock to plummet from $26.77 (its closing price on June 18, 2002) to close at $10.50 on July 10, 2002. Defendants' further disclosure on July 23, 2002 of the impact of the warning letter on Cryolife's operations caused Cryolife's stock price to fall further to close on July 23, 2002 at $8.39 per share.
Any member of the class who desires to be appointed lead plaintiff in the class action must file a motion with the Court no later than September 6, 2002. Class members must meet certain legal requirements to serve as a lead plaintiff. If you have questions or information regarding this action, or if you are interested in serving as a lead plaintiff in this action, you may call or write:
Wolf Popper LLP, Robert C. Finkel, Esq. 845 Third Avenue, New York, NY 10022-6689 Tel.: 212.451.9620, Toll Free: 877.370.7703 Fax: 212.486.2093, Toll Free: 877.370.7704 Email: irrep@wolfpopper.com; website: www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.