HARTFORD, Conn., Jan. 3, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of Florida on behalf of all persons who purchased the publicly traded securities of SFBC International, Inc. ("SFBC" or the "Company") (Nasdaq:SFCC) between February 17, 2004 and December 15, 2005, inclusive (the "Class Period"). Also included are all those who acquired SFBC's shares through the acquisitions of Taylor Technology or PharmaNet and those who purchased in the secondary offering on March 10, 2005.
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements concerning SFBC's business condition. Specifically, defendants touted the Company's strong revenue, earnings, and its ability to outperform competitors and obtain large contracts from drug companies, because of the large numbers of participants its facilities could handle, and its ability to quickly recruit participants for drug trials. SFBC's financial success, however, was the result of business practices that were improper and reckless, and if discovered, would cause the Company to lose its credibility for accurate drug testing, and thus lose customers, expose the Company to fines and possible lawsuits from victims of faulty drugs, and face heavy regulation such that its ability to outperform competitors and quickly recruit large groups of participants could no longer be sustained.
When news of SFBC's improper business practices was revealed to the market beginning on November 2, 2005, through the end of the Class Period on December 15, 2005, the Company's stock price fell 61.9% from $41.49 to $15.78.
If you are a member of the class, you may, no later than March 6, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.