NEW YORK, May 28, 2003 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Eastern District of New York, 03-CV-2670, on behalf of all persons or entities who purchased or otherwise acquired Allou Healthcare Inc. ("Allou" or the "Company") securities (AMEX:ALU) during the period June 22, 1998 to April 9, 2003, both dates inclusive (the "Class Period"). The Complaint names Victor Jacobs, Herman Jacobs, David Shamilzadeh, Mayer Rispler & Company, Arthur Andersen LLP, and KPMG LLP as defendants.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J. Belfi or Sharon Lee at Rabin, Murray & Frank LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
The Complaint alleges that defendants violated the Securities Exchange Act of 1934 by making a series of materially false and misleading statements concerning the Allou's financial results during the Class Period. In particular, the Complaint alleges that Allou failed to disclose, among other facts, that: (i) the Company was materially overstating its accounts receivables, resulting in an overstatement of revenues and earnings; (ii) that Allou was materially overstating its inventory, thus inflating its net worth; and (iii) the Company's financial statements were not prepared in conformity with Generally Accepted Accounting Principles. As a result, the price of the Company's securities were artificially inflated during the Class Period. On April 24, 2003, however, the Company filed with the SEC a Form 8-K which admitted that Allou had overstated it inventory by approximately $35 million and its accounts receivable by approximately $75-$80 million.
As a result of defendants' false and misleading statements the price of Allou securities was artificially inflated throughout the Class Period, causing plaintiff and the other members of the Class to suffer damages.
Plaintiff is represented by the law firm of Rabin, Murray & Frank LLP. Rabin, Murray & Frank LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Allou securities during the Class Period described above, you may, no later than June 30, 2003, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. Contact plaintiff's counsel Eric J. Belfi or Sharon Lee of Rabin, Murray & Frank LLP to further discuss this action, this announcement, or your rights or interests.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca