LOS ANGELES, Jan. 5, 2006 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Southern District of California on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of SeraCare Life Sciences, Inc. ("SeraCare" or the "Company") (Nasdaq:SRLS) (Nasdaq:SRLSE) between February 9, 2005 and December 19, 2005, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges SeraCare and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning SeraCare's operations and financial performance caused the Company's stock price to become artificially inflated, inflicting damages on investors. SeraCare engages in the manufacture and provision of biological products and services for the diagnostic, therapeutic, drug discovery, and research organizations worldwide. The Complaint alleges that throughout the Class Period defendants orchestrated and actively participated in improper accounting practices in direct violation of Generally Accepted Accounting Principles (GAAP). In doing so, defendants (i) used improper revenue recognition policies and practices; (ii) did not properly account for and value inventory; (iii) failed to prevent certain Board members from exerting undue influence on the financial reporting process of the audit process; and (iv) neglected to maintain adequate internal controls. As a result, defendants were unable to ascertain the true financial condition of the Company.
Defendants engaged in these improper accounting practices to bolster SeraCare's stock price, which enabled the Company to complete a secondary offering of stock in May 2005, thereby raising $42 million for the Company, and allowed certain of the defendants to take advantage of the artificially inflated prices during the Class Period and sell 606,000 shares of their SeraCare stock for total proceeds of more than $7.8 million.
On December 20, 2005, before the market opened, the Company announced that "the chairman of the Company's audit committee has received a letter from Mayer Hoffman McCann P.C. (MHM), the Company's independent auditors, in which MHM raised concerns with respect to the Company's financial statements, accounting documentation and the ability of MHM to rely on representations of the Company's management." On this news, SeraCare shares fell as much as 62% before closing down $9.26 per share, on volume of 5.8 million shares -- 116 times the average daily volume for SeraCare.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud. If you are a member of the Class described above, you may move the Court, not later than February 21, 2006, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.