ANSI Advanced Neuromodulation Systems (MM)

The Law Firm of Goldman Scarlato & Karon, P.C. Announces the Filing of a Class Action Lawsuit Against Advanced Neuromodulation Systems Inc. PHILADELPHIA, March 2 /PRNewswire/ -- Goldman Scarlato & Karon, P.C., a law firm with offices in Philadelphia, PA and Cleveland, OH, announces that a lawsuit has been filed in the United States District Court for the Eastern District of Texas, on behalf of persons who purchased or otherwise acquired publicly traded securities of Advanced Neuromodulation Systems Inc. ("Advanced Neuromodulation" or the "Company") (NASDAQ:ANSI) between April 24, 2003 and February 16, 2005, inclusive, (the "Class Period"). The lawsuit was filed against Advanced Neuromodulation, Christopher G. Chavez and F. Robert Merrill III ("Defendants"). If you are a member of this class and wish to view a copy of a complaint and join this class action, please e-mail us at and request a copy of the complaint and a plaintiff certification. If you are a member of the Class, you may move the Court no later than May 2, 2005 to serve as a lead plaintiff for the Class. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. However, if you choose to remain an absent class member, unless and until a class is certified, you are not represented by counsel. The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that Defendants' statements regarding the Company's performance and financial results were materially false and misleading because as a part of its marketing strategy, the Company improperly paid certain physicians a $1,000 incentive for each device implanted in patients, that the Company's growth was materially driven by improperly paying physicians to recommend and implant the Company's products in patients, and that the Company's relationship with its physicians was based upon improper payments and not growing market acceptance of its products. On February 17, 2005, before the market opened, Defendants revealed that the Company had received a subpoena from the Inspector General, Department of Health and Human Services, requesting documents related to the Company's sales and marketing, reimbursement, Medicare and Medicaid billing and other business practices. In addition, the Company announced that revenues in the first quarter of 2005 could be below expectations. In reaction to these announcements, shares of Advanced Neuromodulation fell from $37.60 per share on February 16, 2005 to $29.37 per share on February 17, 2005, representing a decline of 22%. If you bought Advanced Neuromodulation securities between April 24, 2003 and February 16, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (888) 753-2796 to speak with an advisor. DATASOURCE: The Law Firm of Goldman Scarlato & Karon, P.C. CONTACT: Mark S. Goldman, Esq. of The Law Firm of Goldman Scarlato & Karon, +1-888-753-2796

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