NEW YORK, June 15, 2005 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (http://www.pomerantzlaw.com) has filed a class action lawsuit on behalf of purchasers of securities of the Orthodontic Centers of America ("OCA" or the "Company") (NYSE:OCA) during the period from May 18, 2004 through June 7, 2005, inclusive (the "Class Period"). The complaint was filed in the United States District Court, Eastern District of Louisiana.
The Complaint charges that OCA, which provides management services to orthodontists, and its two senior officers, Bartholomew F. Palmisano, Sr., (CEO) and David E. Verret (CFO), defrauded investors by improperly recognizing revenues. On June 7, 2005, OCA announced that the Company was unable to file its already delayed year end report for 2004, and needed to restate its quarterly financial statements for 2004. OCA admitted, among other things, that it had materially overstated its patient receivables and patient revenue for the first three quarters of 2004. Following this announcement, OCA's stock price plummeted by $1.53 per share, to close at $2.50 per share, and has since fallen further to under $1.50 per share, a total drop of more than 66%.
If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa L. Webb (tlwebb@pomlaw.com) or Carolyn Moskowitz (csmoskowitz@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. For more information about the Firm, visit our web site at http://www.pomlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.