BALA CYNWYD, Pa., Jan. 10, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
A securities class action lawsuit pending in the U.S. District Court for the Southern District of California (01CV2260) claims that DJ Orthopedics, Inc. (NYSE:DJO), certain of its officers and directors and its underwriters violated the Securities Act of 1933.
Plaintiff seeks damages for violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 on behalf of all investors who bought DJ Orthopedics, Inc. securities pursuant to the November 15, 2001 IPO (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of DJ Orthopedics, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at www.sbclasslaw.com.
The complaint alleges that the California-based DJ Orthopedics, Inc. on November 15, 2001, completed an IPO of 9 million shares of stock pursuant to a Registration Statement/Prospectus. The offering was priced at $17 per share for total proceeds of $153 million. In the Prospectus, the defendants represented that the Company was dependent, in part, on international sales to fuel its revenue growth and profitability.
The complaint alleges that the statements in the Prospectus regarding DJ Orthopedics' international sales and the accompanying risk disclosures regarding DJ Orthopedics' ability to generate such growth were false and misleading and contained material omissions when made. In actuality, by the time of the IPO, DJ Orthopedics had known that its stock price of $17 reflected the defendants' contention that DJ Orthopedics would achieve its Q4 01 earnings estimates. Prior to the IPO, defendants knew that DJ Orthopedics would not achieve its Q4 earnings estimates. Moreover, this information was disclosed to certain of the underwriting defendants' sales people who, as a result of the change in the Company's Q4 projections, declined to support or otherwise purchase the shares in the "after market." Thus, contrary to the representations in the Prospectus and obligations of the defendants, the Prospectus omitted to state material facts, rendering the Prospectus false and misleading. Public investors who purchased shares traceable to the IPO based on DJ Orthopedics' representations, paying $17 per share for DJ Orthopedics stock, have suffered damages.
If you purchased DJ Orthopedics, Inc. securities pursuant to the November 15, 2001 IPO, you may be a member of the class and have until January 29, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca