WILMINGTON, Del., July 7, 2014 (GLOBE NEWSWIRE) -- Andrews & Springer LLC, a boutique securities class action law firm focused on representing shareholders nationwide, is investigating the Board of Directors of Biolase, Inc. ("Biolase" or the "Company") for possible corporate misconduct and violations of securities laws as recently announced in the former CEO's letter to the Company's board of directors.
On June 27, 2014, Federico Pignatelli, the Company's former CEO, disclosed that he sent a letter to the Company's board of directors in order to obtain books and records from Biolase management concerning suspected wrongdoing, mismanagement and corporate governance failures. Among other things, the letter alleges that Nugent and Paul Clark (the current chairman of Biolase's board of directors) violated securities laws. Specifically, the letter reveals that on or about March 1, 2014, Nugent and Clark leaked the financial results for the Company's fourth quarter and year-end 2013 annual 10-K to Larry Feinberg, the founder and president of Oracle Investment Management, before this information was disclosed to the public.
Pignatelli also alleges that Biolase's current and former directors have loyalties to Oracle and appear to have misappropriated corporate opportunities belonging to the Company. For example, in September 2013, Alexander Arrow, a former director and former President of the Company, and Dr. Frederic Moll, held a secret meeting with Feinberg and Neocis, Inc. ("Neocis"), a start-up company developing robotic health care technologies. As a result of that meeting, rather than working out a potential deal for Biolase, Pignatelli believes that certain directors personally invested in Neocis. Further, Moll potentially misappropriated a Biolase corporate opportunity when he diverted potential investors in Biolase to Auris. Moll is Chairman and Chief Executive Officer of Auris.
Due to these facts, Pignatelli believes that Nugent, along with the other directors of Biolase, is conspiring with Oracle to commit corporate waste and are harming shareholders as a result. A copy of Pignatelli's announcement can be found here.
If you own shares of Biolase and want to receive additional information and protect your investments free of charge, please visit us at http://www.andrewsspringer.com/cases-investigations/biol or contact Craig J. Springer, Esq. at cspringer@andrewsspringer.com, or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook - www.facebook.com/AndrewsSpringer for future updates.
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