Wites & Kapetan, P.A. Will Commence Securities Fraud Class Action Against PainCare Holdings, Inc. -- PRZ.LIGHTHOUSE POINT, Fla. -- Wites & Kapetan, P.A., has been retained to commence a securities fraud class action against PainCare Holdings, Inc. ("PainCare" or the "Company") (AMEX AMEX See: American Stock Exchange :PRZ PRZ Power Rangers Zeo PRZ Philip R. Zimmermann (developer of PGP) PRZ Program Reference Zero (CAM machining) ) and certain of its officers in the U.S. District Court for the Middle District of Florida on behalf of investors who purchased the publicly traded securities of PainCare during the period from August 27, 2002 through and including March 15, 2006 (the "Class Period"). You have until May 19, 2006 to move to be appointed as a Lead Plaintiff if you purchased PainCare stock during the Class Period. PainCare, an Orlando, Florida based company, describes itself as a specialized, professional health services health services Managed care The benefits covered under a health contract organization that includes various surgeons, physiatrists, and pain management specialists. The Company also owns and operates nine ambulatory surgery centers. On March 15, 2006, PainCare revealed that the Company is restating its financial results for fiscal years 2000 through 2005. According to the Company's March 15 announcement, PainCare estimates that the total restatement for the years 2000 to 2004 would be a net negative $23.5 million to earnings. In response to this news, PainCare's stock price dropped by nearly 13% on unusually large trading volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. , and the stock price has plunged more than 50% from the stock's high during the Class Period. During the Class Period, PainCare's stock price was allegedly artificially inflated, which enabled the Company to complete numerous acquisitions of related companies. The stock price was inflated because PainCare employed improper accounting practices that materially overstated o·ver·state tr.v. o·ver·stat·ed, o·ver·stat·ing, o·ver·states To state in exaggerated terms. See Synonyms at exaggerate. o the Company's financial results in violation of Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). PainCare's conduct caused investors to lose millions of dollars. This action will seek to recover damages on behalf of all purchasers of PainCare publicly traded securities during the Class Period due to the artificial inflation of, and subsequent decline in, PainCare's stock price which resulted from the Company's violations of the federal securities laws. If you purchased PainCare stock during the Class Period, you may, no later than May 19, 2006 move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . If you purchased PainCare stock during the Class Period (August 27, 2002 through March 15, 2006), please contact Wites & Kapetan, P.A. at 954-570-8989 or mwites@wklawyers.com |
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