Cauley Geller Announces Class Action Lawsuit Against Dynacq Healthcare, Inc. On Behalf of Investors
05 Janeiro 2004 - 2:01PM
PR Newswire (US)
Cauley Geller Announces Class Action Lawsuit Against Dynacq
Healthcare, Inc. On Behalf of Investors NEW YORK, Jan. 5
/PRNewswire/ -- The Law Firm of Cauley Geller Bowman & Rudman,
LLP announced today that a class action lawsuit has been filed in
the United States District Court for the Southern District of
Texas, Houston Division on behalf of purchasers of Dynacq
Healthcare, Inc. (formerly DYII) ("Dynacq" or the "Company")
publicly traded securities during the period between January 14,
2003 and December 18, 2003, inclusive (the "Class Period"). A copy
of the complaint filed in this action is available from the Court,
or can be viewed on the firm's website at
http://www.cauleygeller.com/show_case.asp?ccode=214&pcode=10&pp=4
. The complaint charges that defendants Dynacq, Philip S. Chan, and
Chiu M. Chan violated Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by
issuing a series of material misrepresentations to the market
between January 14, 2003 and December 18, 2003. More specifically,
the complaint alleges that the defendants' statements were
materially false and misleading because they failed to disclose
and/or misrepresented the following adverse facts: (1) that the
Company had materially overstated its earnings, revenues, net
income, and earnings per share; (2) that the Company was improperly
accounting for its costs and revenue in violation of Generally
Accepted Accounting Principals ("GAAP"); (3) that the Company
lacked adequate internal controls and was therefore unable to
ascertain the true financial condition of the Company; and (4) that
as a result, the value of the Company's net income and financial
results were materially overstated at all relevant times. On
December 1, 2003, the Company announced that it was requesting an
automatic extension of up to 15 days for filing its 2003 Form 10-K.
The Company stated that recently the Division of Corporation
Finance of the United States Securities and Exchange Commission
("SEC") commented upon Dynacq's periodic filings. On December 16,
2003, the Company announced that it would further postpone the
filing of its 2003 Form 10-K until the SEC completed its review of
Dynacq's periodic filings and its independent auditors have
completed their audit of the Company's Aug. 31, 2003 financial
statements. On December 18, 2003, the Company announced that Ernst
& Young, LLP ("E&Y") resigned late on December 17, 2003 as
the Company's independent auditor effective immediately. E&Y
verbally advised the Company that E&Y resigned due to the
Company's lack of internal controls necessary to develop reliable
financial statements. News of this shocked the market with shares
of Dynacq falling 18.56 percent or $2.04 per share to close at
$8.95 per share on December 18, 2003. The Company further shocked
the market when it announced, after the markets had closed on
December 18, 2003, that it had received a NASDAQ Staff
Determination stating that because Dynacq failed to comply with the
requirement of NASD Marketplace Rule 4310 (c) (14), that it file a
copy of its Form 10-K Annual Report to the Securities and Exchange
Commission ("SEC") in a timely fashion, that its common stock would
be delisted from the NASDAQ on December 30, 2003, unless Dynacq
requested a hearing. Additionally, the Company disclosed that it
had received a notice from the Ft. Worth, Texas office of the SEC
that it was conducting an informal investigation pertaining to
Dynacq's reporting of its financial statements, its recognition of
costs and revenue, its allowances for doubtful accounts, and its
internal controls. News of this shocked the market. Shares of
Dynacq plummeted 54% or $4.86 per share to close at $4.09 per share
on December 19, 2003. If you bought Dynacq publicly traded
securities between January 14, 2003 and December 18, 2003,
inclusive, and you wish to serve as lead plaintiff, you must move
the Court no later than February 24, 2004. If you are a member of
this class, you can join this class action online at
http://www.cauleygeller.com/template8.asp?pcode=6&pp=1 . Any
member of the purported class may move the Court to serve as lead
plaintiff through Cauley Geller or other counsel of their choice,
or may choose to do nothing and remain an absent class member.
Cauley Geller is a national law firm that represents investors and
consumers in class action and corporate governance litigation. It
is one of the country's premiere firms in the area of securities
fraud, with in-house finance and forensic accounting specialists
and extensive trial experience. Since its founding, Cauley Geller
has recovered in excess of two billion dollars on behalf of
aggrieved shareholders. The firm maintains offices in Boca Raton,
Little Rock and New York. If you have any questions about how you
may be able to recover for your losses, or if you would like to
consider serving as one of the lead plaintiffs in this lawsuit, you
are encouraged to call or e-mail the Firm or visit the Firm's
website at http://www.cauleygeller.com/ . Contact: CAULEY GELLER
BOWMAN & RUDMAN, LLP Samuel H. Rudman, Esq. or David A.
Rosenfeld, Esq. Client Relations Department: Jackie Addison,
Heather Gann or Chandra West P.O. Box 25438 Little Rock, AR
72221-5438 Toll Free: 1-888-551-9944 Fax: 1-501-312-8505 E-mail:
DATASOURCE: Cauley Geller Bowman & Rudman, LLP CONTACT: Samuel
H. Rudman, Esq. or David A. Rosenfeld, Esq., both of Cauley Geller
Bowman & Rudman, LLP, +1-631-367-7100 Web site:
http://www.cauleygeller.com/
http://www.cauleygeller.com/template8.asp?pcode=6&pp=1
http://www.cauleygeller.com/show_case.asp?ccode=214&pcode=10&pp=4
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