ENGLEWOOD CLIFFS, N.J., April 10, 2006 (PRIMEZONE) -- Gardy & Notis, LLP announces that it has filed a lawsuit in the United States District Court for the Middle District of Tennessee on behalf of persons who purchased or otherwise acquired publicly traded securities of America Service Group, Inc. (Nasdaq:ASGRE) at any time between September 24, 2003 to March 16, 2006.
If you purchased or otherwise acquired America Service stock at any time between September 24, 2003 to March 16, 2006, and have sustained damages, you may, no later than June 5, 2006, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation, and you must meet certain legal requirements to serve as a lead plaintiff.
The complaint alleges that America Service and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder by the SEC. The complaint alleges America Service issued numerous false and misleading statements about its condition that failed to disclose or misrepresented that:
-- America Service was not charging its customers in accordance with their contracts;
-- America Service failed to properly credit customers with discounts, rebates, and price concessions;
-- America Service failed to provide customers with appropriate credits for returned pharmaceutical products; and
-- America Service inappropriately established and utilized reserves to help its more closely meet budgeted results.
After the close of trading on March 15, 2006, America Service announced that it will restate its previously reported earnings for all of 2001, 2002, 2003, 2004, and the first six months of 2005, and issue refunds to customers where it failed to appropriately credit their accounts. America Service shares fell $5.65 per share, or approximately 29%, to close at $13.95 per share in reaction to the announcement.
For more information regarding the lawsuit or to obtain a copy of the complaint, please contact plaintiff's counsel, Mark C. Gardy at Gardy & Notis, LLP:
Gardy & Notis, LLP Mark C. Gardy 440 Sylvan Avenue Englewood Cliffs, New Jersey 07632 Telephone: 201-567-7377 Fax: 201-567-7337 E-mail: mgardy@gardylaw.com Website: www.gardylaw.com