ATLANTA, Aug. 29, 2002 (PRIMEZONE) -- Investors have until September 6 to file a motion seeking lead plaintiff designation in a shareholder lawsuit against CryoLife, Inc. (NYSE:CRY), Berman DeValerio Pease Tabacco Burt & Pucillo said today.
The complaint was filed July 31 in U.S. District Court for the Northern District of Georgia. It seeks damages for violations of federal securities laws on behalf of all investors who bought CryoLife common stock from April 2, 2001 through July 5, 2002 (the Class Period).
Berman DeValerio has represented investors in class actions for 20 years. To review the complaint and learn more about becoming a lead plaintiff, please visit the firm's website at www.bermanesq.com.
The lawsuit claims that CryoLife and four of its officers failed to notify investors about warnings it received as far back as 1997 from the U.S. Food and Drug Administration (FDA) concerning quality-control problems at the company. CryoLife, which processes and stores human tissues for later implantation into patients, also was notified in 2001 that the Centers for Disease Control and Prevention (CDC) and/or the FDA were concerned about infections stemming from the company's tissue implants. In addition, the lawsuit says CryoLife knew that one or possibly two patients implanted with CryoLife-processed heart valves had developed serious fungal infections. CryoLife failed to tell shareholders about these problems, the complaint alleges.
After rumors of problems began to surface in June 2002, CryoLife finally revealed that the company had received one letter from the FDA citing safety violations. The complaint claims CryoLife falsely assured investors it had never before received such a warning and denied any evidence of heart valve infections. According to the CDC, CryoLife had, in fact, received a letter in March 2002 concerning test results that showed evidence of infection. On July 5, 2002, CryoLife issued a press release correcting its previous misstatements.
The market reacted severely to the news. CryoLife's stock price dropped from $23.66 per share just before the belated disclosures to as low as $9.90 on July 10, 2002. CryoLife stock had traded at a high of almost $45 per share during the Class Period.
In addition, the complaint alleges that CryoLife overstated its 2001 income and earnings per share by approximately 20%. In a March 29, 2002 press release, CryoLife announced that its previously issued financial statements were false and that the company had restated its reported financial results for 2001.
If you purchased CryoLife, Inc. common stock during the period April 2, 2001 through July 5, 2002, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Sara B. Davis, Esq. Michael G. Lange, Esq. One Liberty Square Boston, MA 02109 (800) 516-9926 law@bermanesq.com
You may also visit the firm's website at www.bermanesq.com.
If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than September 6, 2002. 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. You may also retain counsel of your choice. To be a member of the class, however, you need not take any action at this time.
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 consists of 34 attorneys in Boston, San Francisco and West Palm Beach, Florida.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca