CORAL SPRINGS, Fla., Sept. 14, 2005 (PRIMEZONE) -- The law firm of Mager & Goldstein LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Western District of Pennsylvania on behalf of all purchasers of securities of World Health Alternatives, Inc. ("World Health" or the "Company")(OTCBB:WHAIE) between June 26, 2003 and August 18, 2005, inclusive (the "Class Period").
The Complaint alleges that World Health, certain of its officers, and its former auditor violated the Securities Exchange Act of 1934 by issuing materially false and misleading statements during the Class Period which resulted in artificially inflating the value of World Health stock. Specifically, defendants misrepresented and failed to disclose that: (1) there were discrepancies in the amount of the Company's outstanding shares; (2) convertible debt and warrant agreements connected with the Company's preferred stock were not properly accounted for; (3) there was underpayment by defendants of certain tax liabilities exceeding $4 million; (4) the Company's misstatements to its lenders resulted in $6.5 million in excess funding under the Company's loan arrangements; and (5) the Company was unable to determine its actual financial condition due to the lack of proper internal controls.
Because of the above activities, World Health had terminated its outside auditor, Daszkal Bolton LLP, and CEO Richard E. McDonald had resigned. The Company announced that it would be restating its prior financial statements in light of the above revelations, and investors were warned not to rely on the information. The market reacted to this news and on August 19, 2005, the price of World Health common stock tumbled 86%, trading as low as $.25 per share after closing at $1.85 per share on August 18, 2005.
If you bought World Health securities between June 26, 2003 and August 18, 2005 and sustained damages, you may, no later than October 24, 2005, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative who acts on behalf of other class members in directing the litigation. Under certain circumstances, several class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by whether or not you serve as lead plaintiff. You may retain Mager & Goldstein LLP, or other counsel, to represent you in this action.
Mager & Goldstein has offices in Pennsylvania and Florida. The firm's attorneys have been litigating complex commercial matters for over twenty years.
If you wish to discuss the lawsuit against World Health Alternatives, Inc. with us, or have any questions about this notice or your legal rights with regard to this case, please contact the following attorney:
Jayne Arnold Goldstein 2825 University Drive, Suite 350 Coral Springs, Florida 33065 954-341-0844 Telephone 866-274-8258 Toll Free 954-341-0855 Fax E-mail: jgoldstein@mwg-law.com