NEW YORK, July 14, 2003 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Middle District of Florida, on behalf of all persons or entities who purchased or otherwise acquired Cryo-Cell International ("Cryo-Cell" or the "Company") securities (NYSE:CCCEC) during the period March 16, 1999 to May 20, 2003, both dates inclusive (the "Class Period").
The Complaint names Cryo-Cell, Mercedes Walton, Gerald F. Maass, Jill M. Taymans, Edward Modzelewski, Frederick C. S. Wilhelm, Wanda D. Dearth, Junior Winokur, Daniel D. Richard, Ronald Richard, Charles D. Nyberg, John V. Hargiss, Weinick Sanders Leventhal & Co., LLP, and Mirsky, Furst & Associates, P.A. 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 section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the Securities and Exchange Commission. In particular, the Complaint alleges that defendants 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%.
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 Cryo-Cell securities during the Class Period described above, you may, no later than August 4, 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.