NEW YORK, Sept. 29, 2004 (PRIMEZONE) -- A class action lawsuit has been filed by Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) in the United States District Court for the Central District of California against Biolase Technology, Inc. ("Biolase" or the "Company") (Nasdaq:BLTI) and two of the Company's senior officers, on behalf of investors who purchased the securities of Biolase during the period between October 29, 2003 through July 16, 2004, inclusive (the "Class Period").
The lawsuit charges that Biolase made material omissions and misrepresentations concerning its financial performance, causing Biolase's financial results to be inflated. As a result of this inflation, the Company was able to complete a secondary stock offering of 2.8 million shares in February 2004 at $18.80 per share.
Thereafter, on July 16, 2004, after the close of the market, Biolase reported preliminary results for the second quarter of 2004 which were below analysts' expectations. As a result of this news, the Company's stock declined to $8.78.
According to the Complaint, defendants knew that Biolase was not performing nearly as well as represented. It is alleged that defendants concealed from investors that, (i) Waterlase was not gaining market share and demand for the product was not increasing at the rates represented by defendants; (ii) Biolase had introduced a lower priced entry level laser which was cannibalizing sales such that Biolase's reported earnings were false and misleading; (iii) defendants were concealing this decreasing demand by granting extended payment terms and price breaks; and (iv) Biolase would not achieve the earnings growth forecasted.
If you purchased the securities of Biolase during the Class Period, you have until October 5, 2004 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.