NEW YORK, Aug. 20, 2004 (PRIMEZONE) -- Murray, Frank & Sailer LLP announces that a Class Action lawsuit was filed in the United States District Court for the Southern District of Florida on behalf of a class (the "Class") consisting of all persons who purchased or otherwise acquired securities of Cross Country Healthcare, Inc. ("Cross Country" or the "Company") (Nasdaq:CCRN) between October 25, 2001 and August 6, 2002, inclusive (the "Class Period").
The Complaint charges Cross Country and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims that defendants' omissions and material misrepresentations concerning Cross Country's business operations and prospects artificially inflated the Company's stock price, inflicting damages on investors. Cross Country provides healthcare staffing services to hospitals, pharmaceutical companies and other healthcare providers across all 50 states. The complaint alleges that defendants knew or recklessly disregarded that: (1) contrary to defendants' upbeat statements, hospitals actually were hiring fewer of the Company's nurses; (2) the nursing shortage, which the Company previously had touted as creating a favorable business environment, was no longer creating the demand for temporary nurses that Cross Country represented to the investing public; and (3) Cross Country had problems with staffing orders being received from hospitals and then abruptly canceled -- a problem which also hurt the Company's stock and spread to the rest of the industry, but which defendants never disclosed to the investing public.
On August 7, 2002, following news of the decline in demand and a drop in the number of the Company's full-time nurses, Cross Country shares fell below the Company's IPO price for the first time in its history, closing 45% below the previous day's close.
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 acquired the common stock of Cross Country between October 25, 2001 and August 6, 2002, inclusive, and sustained damages, you may, no later than October 5, 2004, move the Court to serve as lead plaintiff of the class. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca