NEW YORK, May 8, 2007 (PRIME NEWSWIRE) -- On April 18, 2007, Roy Jacobs & Associates announced that it had commenced a class action lawsuit in the United States District Court for the Northern District of California on behalf of all purchasers of the common stock and other securities of Cutera, Inc. ("Cutera" or the "Company") (Nasdaq:CUTR). Defendants included Cutera and certain of its top officers and directors.
Plaintiff will be amending his Complaint to assert a new, longer Class Period: from January 31, 2007 through May 7, 2007 (the "Class Period"), and incorporate new allegations.
On May 7, 2007, after the close of trading, Cutera announced "the unsuccessful implementation of our junior sales program, unusually high sales employee turnover, and disappointing results from PSS and other national accounts," and it forecast fiscal second quarter and 2007 sales below expectations. None of these adverse developments were adequately disclosed on April 4, 2007 when, in announcing disappointing results, CEO Connors stated: "This quarter's shortfall was due primarily to lower than expected productivity levels of our recent sales expansion. We are implementing specific initiatives to address this matter and remain confident in our ability to increase our revenue growth." On May 8, 2007, Cutera shares opened at $23.05, down $6.19, on heavy volume.
You may join this action by visiting our website at www.jacobsclasslaw.com, or, for further information you may call toll free, 1-888-884-4490, or contact counsel by e-mail at: jacobs@jacobsclasslaw.com.
The complaint previously filed alleged that Cutera and certain officers and directors violated the federal securities laws by making false and misleading statements and omissions assuring the investing public that increased sales efforts and other corporate developments would lead to extraordinary growth in the first quarter of 2007, and for the entire year. Specifically, Cutera asserted on January 31, 2007 that these positive factors would lead to 25% revenue growth for the first quarter of 2007 and for the full year, 33% growth in net income for the first quarter of 2007, and 25% growth in net income for the full year. This announcement was followed shortly thereafter by unusually large stock sales by Cutera's CEO, defendant Kevin P. Connors and Cutera's CFO, defendant Robert J. Santilli. The Complaint alleges that CEO Connors has a history of making stock sales at high prices just prior to the release of adverse corporate news.
Then on April 5, 2007 defendants shocked the market by announcing that revenues and earnings for the first quarter of 2007 would not increase 25%, as stated just weeks before, but rather would materially decrease. Defendants offered no cogent explanation for this reversal.. On this news, Cutera shares dropped $11.72 per share on extraordinary trading volume of 7.2 million shares. As noted, even then, Cutera reassured investors, and concealed the collapse of its junior sales program and an unusual number of sales staff defections. These facts were not disclosed until May 7, 2007.
If you purchased Cutera stock during the Class Period, you may qualify to serve as Lead Plaintiff on behalf of the Class, which consists of all persons and entities who purchased Cutera stock and other securities from January 31, 2007 through May 7, 2007. You are not required to have sold your Cutera stock in order to claim damages, or to serve in this role. All motions for appointment as Lead Plaintiff must be filed with the Court by June 18, 2007.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact Roy L. Jacobs. Mr. Jacobs will personally speak with you at no cost or obligation. You may also join this action by visiting our website at www.jacobsclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca/