NEW YORK, Aug. 18, 2004 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) has filed a class action lawsuit against Biolase Technology, Inc. ("Biolase" or the "Company") (Nasdaq:BLTI) and two of the Company's senior officers, on behalf of all persons or entities who purchased the securities of Biolase during the period between October 29, 2003 through July 16, 2004, inclusive (the "Class Period"). The case was filed in the United States District Court for the Central District of California.
The complaint alleges that Biolase, a medical technology company that designs, manufactures and markets proprietary dental laser systems, and the Company's President Jeffrey W. Jones, and Chief Financial Officer Edson J. Rood, violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making material omissions and misrepresentations concerning Biolase's financial performance, causing Biolase's financial results to be inflated. As a result of this inflation, the Company was able to complete a secondary stock offering of 2.8 million shares in February 2004 at $18.80 per share. Thereafter, on July 16, 2004, after the close of the market, Biolase reported preliminary results for the second quarter of 2004, which were below analysts' expectations. As a result of this news, the Company's stock declined to $8.78.
According to the Complaint, defendants knew that Biolase was not performing nearly as well as represented. It is alleged that defendants concealed from investors that, (i) Waterlase was not gaining market share and demand for the product was not increasing at the rates represented by defendants; (ii) Biolase had introduced a lower priced entry level laser which was cannibalizing sales such that Biolase's reported earnings were false and misleading; (iii) defendants were concealing this decreasing demand by granting extended payment terms and price breaks; and (iv) Biolase would not achieve the earnings growth forecasted.
If you purchased the securities of Biolase during the Class Period, you have until October 5, 2004 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.