LOS ANGELES, June 18, 2003 (PRIMEZONE) -- Glancy & Binkow LLP -- representing shareholders of Allou Healthcare, Inc. -- announces 13 days remaining to move to be a lead plaintiff in the shareholder lawsuit. All persons and institutions who purchased securities of Allou Healthcare, Inc. ("Allou" or the "Company")(AMEX:ALU) between June 22, 1998, and April 9, 2003, inclusive (the "Class Period"), may move the Court not later than July 1, 2003, to serve as lead plaintiff, however, you must meet certain legal requirements.
If you wish to receive a copy of the Complaint, or have any questions concerning your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy & Binkow LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9161, Toll Free at (888) 773-9224, or e-mail to info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges the auditors and certain executive officers of Allou with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements concerning Allou's financial performance caused Allou's stock price to become artificially inflated, inflicting damages on investors. Allou is a distributor of consumer personal care products and prescription pharmaceuticals, and also manufactures upscale hair- and skin-care products for sale under private labels. The complaint alleges that, during the Class Period, Allou was materially overstating its account receivables, thereby overstating its revenue and earnings, and overstating its inventory, thereby overstating its net worth. As a result of the foregoing, Allou's financial statements during the Class Period were not prepared in accordance with Generally Accepted Accounting Principles (GAAP). Additionally, plaintiff claims that the Company's auditors did not audit Allou's financial statements in accordance with Generally Accepted Auditing Standards (GAAS), as they either knew of the accounting fraud at Allou or recklessly disregarded it. On April 9, 2003, Allou announced that its lenders have filed an involuntary petition for bankruptcy in the Eastern District of New York under the provisions of Chapter 11 of the United States Bankruptcy Code. Also on April 9, 2003, the American Stock Exchange halted trading in Allou stock.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy & Binkow LLP, a law firm with significant experience in prosecuting shareholder lawsuits, and substantial expertise in actions involving corporate fraud.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.