NEW YORK, July 10, 2008 (PRIME NEWSWIRE) -- Roy Jacobs & Associates announces that it has amended its previously filed class action lawsuit in the United States District Court, Western District of Wisconsin, to add an insider trading claim on behalf of purchasers of the common stock of TomoTherapy, Inc. ("TOMO" or the "Company") (Nasdaq:TOMO) from October 10, 2007 through October 22, 2007.
For further information, please contact Roy L. Jacobs, Esq. toll-free at 1-888-884-4490 or by e-mail to rjacobs@jacobsclasslaw.com. You may also visit the firm's website at www.jacobsclasslaw.com.
On October 10, 2007, the Company's secondary share offering of 8.5 million shares (the "Offering") became effective at $22.25 per share. None of the proceeds of the Offering were received by the Company. Rather, the Company's Chairman, its Chief Executive Officer, its President and its Chief Financial Officer sold a very significant number of shares and together received tens of millions of dollars in proceeds.
The complaint charges TOMO and the officers referenced above with violations of the federal securities laws. It is alleged, inter alia that defendants concealed in the Offering and thereafter that a larger percentage of TOMO's revenue backlog was from for-profit entities which had ordered multi-unit Hi-Art X-ray medical treatment systems and could be anticipated to take delivery of the units sequentially throughout 2008 and 2009. Thus, contrary to defendants' representations that order backlog would generally be recognized as revenue within 12 months of order placement, this was not the case with respect to the multi-unit orders, which represented an increasingly large percentage of total backlog.
On April 17, 2008, defendants issued a press release announcing that TOMO would suffer a net loss for the first quarter of 2008, and that defendants had revised materially downward their revenue and earnings outlook for fiscal 2008. Defendants finally admitted that that a greater percentage of TOMO's backlogged orders were for multi-unit Hi-Art systems ordered by for profit entities who would be expected to take delivery of the units sequentially. Thus, these units would remain in backlog longer than single-unit orders and delivery would be pushed further back in 2008 and even into 2009. The representation that backlog could ordinarily be converted into recognized revenue within 12 months from order placement was finally revealed as false, incomplete, and misleading.
If you bought TOMO shares in the period from October 10, 2007 through October 22, 2007 (whether on the open market or in the Offering) you may have an insider trading claim under the federal securities laws. Also, if you bought TOMO shares during the period from October 10, 2007 through April 17, 2008, you may also have a claim under the federal securities laws.
If you are interested in discussing your rights free of charge, please contact Roy L. Jacobs. You may qualify to serve as Lead Plaintiff on behalf of the Class. All motions for appointment as Lead Plaintiff must be filed by July 29, 2008.
You may also sign up at 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.