HOUSTON, July 15, 2003 (PRIMEZONE) -- On July 11, 2003, the law firm of Emerson Poynter LLP filed a class action complaint on behalf of one of its clients against Cryo-Cell International ("Cryo-Cell" or the "Company") and certain other individual defendants. The action was filed in the United States District Court for the Middle District of Florida, Tampa Division, on behalf of all persons or entities who purchased or otherwise acquired Cryo-Cell securities (NYSE:CCCEC) during the period March 16, 1999 to May 20, 2003 (the "Class Period"). If you are a Cryo-Cell shareholder, or purchased Cryo-Cell securities during the Class Period, you may contact Emerson Poynter LLP to receive a copy of the complaint, and learn more about your potential rights.
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%.
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.
Plaintiff is represented by Emerson Poynter LLP, a securities class action trial law firm, which has significant experience in shareholder class actions and complex litigation cases involving corporate governance issues.
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.
If you are a Cryo-Cell shareholder, or if you purchased Cryo-Cell shares during the Class Period, you may call Emerson Poynter LLP to discuss your potential legal rights.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca