NEW YORK, Sept. 15, 2004 (PRIMEZONE) -- An investor sued deCODE genetics, Inc. ("deCODE" or the "Company") (Nasdaq:DCGN) today, claiming the Company and two top officers issued misleading financial statements to the investing public.
Berman DeValerio Pease Tabacco Burt & Pucillo (www.bermanesq.com) filed the class action in the U.S. District Court for the Southern District of New York. The lawsuit seeks damages for violations of federal securities laws on behalf of all investors who bought deCODE common stock from October 29, 2003 through and including August 26, 2004 (the "Class Period").
To receive a copy of the complaint, you may contact the court, call the firm at (800) 516-9926 or go to http://www.bermanesq.com/pdf/deCODEgenetics-Cplt.pdf. The lawsuit claims that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder, including U.S. Securities and Exchange Commission ("SEC") Rule 10b-5.
The complaint names as defendants: deCODE; Kari Stefansson, the Company's president and chief executive officer; and Lance Thibault, deCODE's chief financial officer and treasurer.
The complaint alleges that, throughout the Class Period, deCODE artificially inflated its stock price by issuing false and misleading financial statements to the public.
Specifically, deCODE concealed from investors that its period-end financial closing procedures were materially deficient and that the Company lacked adequate internal controls, the lawsuit says. As a result of these problems, deCODE improperly recognized revenue in violation of Generally Accepted Accounting Principles.
On August 26, 2004, deCODE announced that its outside auditor had resigned because of the Company's failure to disclose the deficiencies with financial closing procedures.
On this news, the price of deCODE stock fell 17% from a closing price of $6.58 per share on August 25, 2004 to $5.48 on August 30, 2004.
Due to the inflated stock price, deCODE was able to raise net proceeds of $144 million from an April 2004 public offering of $150 million worth of convertible notes.
If you purchased deCODE common stock from October 29, 2003 through and including August 26, 2004, you may wish to contact the following attorney at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
N. Nancy Ghabai, Esq. One Liberty Square Boston, MA 02109 (800) 516-9926 law@bermanesq.com
If you wish to apply to be lead plaintiff in this action, a motion on your behalf must be filed with the court no later than November 1, 2004. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action, or you may submit information online at http://www.bermanesq.com/Securities/Signup1.asp?caseid=526. Please note, you may also retain counsel of your choice and need not take any action at this time to be a class member.
Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations, and consumer fraud. The firm consists of 33 attorneys in Boston, San Francisco and West Palm Beach, Florida.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.