NEW YORK, Dec. 27, 2002 (PRIMEZONE)-- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the District of Massachusetts, on behalf of all purchasers of Cytyc Corporation ("Cytyc" or the "Company") (Nasdaq:CYTC) securities between July 25, 2001 and June 25, 2002, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's website at www.faruqilaw.com.
The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning Cytyc's financial results and business prospects. Specifically, the complaint alleges that Cytyc failed to disclose the Company's impressive revenue growth was a result of overstocking inventory and deep discounts of it's main source of revenue, ThinPrep. As a result, the shares of the Company's stock was artificially inflated throughout the Class Period, allowing the Company to acquire other companies using the artificially inflated stock as currency and allowing executives to sell in excess of 70,000 shares at inflated prices. However, on April 24, 2002, the Company reported that its revenues would materially deviate from its initial disclosure of between $295-$305 million in 2001 to $270 million due to a cut in inventory by its customers which had overstocked ThinPrep, contradicting earlier repeated assertions from the Company. On this news, the price of Cytyc shares plummeted 36.5% from $24.80 to $15.73 the next day. The full truth of Cytyc's financial situation was not disclosed until June 25, 2002, when the Company downgraded their revenue expectations again to between $230-$240 million causing Cytyc shares to plummet again from $11.46 on June 24, 2002 to $6.88 on June 25, 2002, a drop of 39%.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Cytyc securities between July 25, 2001 through June 25, 2002, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website at www.faruqilaw.com.
If you purchased Cytyc securities during the Class Period, you may, not later than February 17, 2003, move the court to serve as lead plaintiff of the class. In order 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, please contact:
ERIC CRUSIUS, ESQ. ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail Ecrusius@faruqilaw.com Avozzolo@faruqilaw.com
More information on this and other Class Action Lawsuits can be found at www.primezone.com/ca.