NEW YORK, June 15, 2004 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Northern District of Texas, 4-04CV-297-Y, on behalf of all persons or entities who purchased or otherwise acquired Abatix Corporation ("Abatix" or the "Company") securities (Nasdaq:ABIX) between April 14, 2004 at 5:05 p.m. EST to April 16, 2004, at 9:27 a.m. EST, both times inclusive (the "Class Period"). The Complaint names Terry Shaver, Frank Cinatl IV, and the Company as defendants.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J. Belfi at Murray, Frank & Sailer LLP, 275 Madison Avenue, Suite 801, 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 info@murrayfrank.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 Abatix's business agreement with Goodwin Group LLC during the Class Period. Specifically, the Complaint alleges that Abatix knew but failed to disclose certain material facts, including that: (i) the Company had not verified the proprietary nature of RapidCool or that the Company had in fact, obtained the "exclusive worldwide rights to distribute RapidCool;" (ii) that Abatix had not verified that Goodwin Group LLC was the assignee of patents relating to RapidCool products, nor had defendants verified the ownership of any patent applications filed with respect to the product line; and (iii) defendants knew but failed to disclose that they had only been permitted to perform limited due diligence on the proprietary nature of RapidCool products before signing the distributorship agreement. As a result, the price of the Company's securities were artificially inflated during the Class Period. On April 21, 2004, the Company admitted that Abatix's April 14, 2004 press release announcing the signing of an agreement with Goodwin Group LLC to distribute the RapidCool (TM) product line created a significant increase in the price and volume of shares traded, "which the Abatix believes was not warranted by Company developments."
As a result of defendants' false and misleading statements the price of Abatix 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 Murray, Frank & Sailer LLP. Murray, Frank & Sailer 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 Abatix securities between April 14, 2004 at 5:05 p.m. EST to April 16, 2004, at 9:27 a.m. EST, you may, no later than June 22, 2004, 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.murrayfrank.com. Contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton at Murray, Frank & Sailer LLP to further discuss this action, this announcement, or your rights or interests.