PHILADELPHIA, Sept. 5, 2003 (PRIMEZONE) -- Law Offices Bernard M. Gross, P.C. (http://www.bernardmgross.com) announces that a class action lawsuit was commenced in the United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of DVI, Inc. ("DVI" or the "Company") (Other OTC:DVIXQ) securities during the period between November 7, 2001 and August 13, 2003, and who have been damaged thereby (the "Class Period").
The action, numbered 03cv 5000, is pending against defendants Michael A. O'Hanlon, former President and Chief Executive Officer and Director of DVI, and Steven R. Garfinkel, DVI's former Chief Financial Officer. DVI is not named as a defendant because it has filed for bankruptcy protection. The case has been assigned to the Honorable Legrome Davis. A copy of the Complaint is available from the Court or can be viewed on the Law Offices Bernard M. Gross, P.C. website at www.bernardmgross.com.
The Complaint charges, among other things, that throughout the Class Period, November 7, 2001 and August 13, 2003, certain of DVI officers and directors violated Section 10(b) and 20(a) of Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder by engaging in a fraudulent scheme to deceive the public as to DVI's true financial condition. The Complaint alleges that Defendants failed to disclose material adverse facts, including, but not limited to, the Company's failure to write down the value of certain impaired assets; its failure to properly account for and report non-recurring transactions; its failure to adopt adequate internal controls; and its material overstatement of its assets and earnings. As a result of Defendants fraudulent scheme, DVI stock became artificially inflated during the Class Period, trading as high as $20.99 per share on June 17, 2002, thereby causing damages to Class Period purchasers of DVI securities.
On August 13, 2003, after the market closed, Defendants issued a press release revealing DVI's intention to file for Chapter 11 bankruptcy protection and that the Company had not yet secured debtor-in-possession. On August 25, 2003, DVI filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions.
If you purchased securities of DVI, Inc. during the period between November 7, 2001 and August 13, 2003, you may no later than September 29, 2003 move the Court to serve as lead plaintiff of the Class, if you so choose. 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 rights or interests with respect to these matters,
PLEASE CONTACT: Law Offices Bernard M. Gross, P.C.
Susan R. Gross, Esq.
Deborah R. Gross, Esq.
1515 Locust Street, Suite 200
Philadelphia, PA 19102
Telephone: 866-561-3600 (toll free)
or 215-561-3600
E-mail: susang@bernardmgross.com or
debbie@bernardmgross.com.
Website: http://www.bernardmgross.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca