MINNEAPOLIS, July 1, 2003 (PRIMEZONE) -- Lockridge Grindal Nauen, P.L.L.P. announced today that a class action lawsuit has been filed in the United States District Court for the Middle District of Florida, Tampa Division, on behalf of purchasers of Cryo-Cell International, Inc. ("Cryo-Cell" or the "Company") (Nasdaq:CCELE) publicly traded securities during the period between March 16, 1999 through May 20, 2003, inclusive (the "Class Period").
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between March 16, 1999 and May 20, 2003, thereby artificially inflating the price of Cryo-Cell securities. During the Class Period, the Company issued statements that failed to disclose and/or misrepresented the following adverse facts, among others: (1) that the Company had materially overstated its earnings, net income and earnings per share; (2) that the Company continually recognized revenue in violation of generally accepted accounting principles ("GAAP") and the Company's own internal accounting principles with respect to the following: (a) related-party transactions; (b) revenue sharing agreements; and (c) revenue recognition for the sale Area Licenses; (3) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (4) that as a result, the Company's financial results were materially overstated at all relevant times.
On April 15, 2003, the Company issued a press release wherein it disclosed that it may be necessary to restate its financial results for fiscal years 2001 and 2002 because of improper recognition of revenue. Shortly thereafter, on May 20, 2003, the Company issued a press release announcing the resignation of its auditor, Ernst & Young LLP and the Company's continued assessment of certain revenue recognition accounting policies. On news of this, Cryo-Cell shares fell 14%.
If you bought Cryo-Cell publicly traded securities between March 16, 1999 through May 20, 2003, inclusive, and you wish to serve as lead plaintiff, you must make a motion so requesting before the Court no later than August 4, 2003. Any member of the purported class may move the Court to serve as lead plaintiff through Lockridge Grindal Nauen or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Plaintiffs are represented by the law firm of Lockridge Grindal Nauen P.L.L.P. The firm has considerable experience in prosecuting securities class actions, has extensive experience representing shareholders in class actions, and has successfully recovered billions of dollars for defrauded investors and shareholders. The reputation and expertise of the firm in shareholder and other class action litigation have been repeatedly recognized by courts, which have appointed the firm to major positions in complex multi-district and consolidated litigations. Lockridge Grindal Nauen P.L.L.P. has offices in Minneapolis and Washington, D.C.
If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or write:
Karen Hanson Riebel, Esq. Lockridge Grindal Nauen P.L.L.P. 100 Washington Avenue South Suite 2200 Minneapolis, MN 55401 (612) 339-6900 khriebel@locklaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.