SUIT FILED AGAINST AMERICAN DENTAL LASER, INC.
SUIT FILED AGAINST AMERICAN DENTAL LASER, INC. TROY, Mich., April 15 /PRNewswire/ -- American Dental Laser, Inc.
(ADL) (NASDAQ: ADLI) announced that on April 8, 1992, a purported stockholder of the company filed a complaint in the United States District Court for the Eastern District of Michigan against the company, 10 of the company's officers or directors, a former officer and a former director and 14 stockholders of the company who sold a portion of their shares as part of the company's initial public offering in June 1991. Dain Bosworth Incorporated and Pennsylvania Merchant Group Ltd. were also named as defendants, both individually in their capacity as co-lead underwriters of the company's initial public offering and as representatives of the class of underwriters who participated in the initial public offering.
The complaint alleges, among other things, that the company's Prospectus for its initial public offering contained untrue statements of material fact and omitted to state material facts in violation of the Securities Act of 1933. The complaint seeks permission to proceed as a class on behalf of certain persons who purchased shares of the company's common stock between June 18, 1991 and March 30, 1992 and who were allegedly damaged thereby. The complaint seeks (i) rescission of the purchased common stock for return of the price paid plus interest, or, in the alternative, an unspecified amount of consequential damages; (ii) from the underwriter defendants and individual defendants, damages in an unspecified amount; and (iii) counsel fees, costs and such other relief as the court deems appropriate. The company also announced that on April 13, 1992, another purported stockholder of the company filed a complaint in the United States District Court of the Eastern District of Michigan against the company and two of its executive officers. The complaint alleged, among other things, that the defendants knowingly or recklessly omitted material false statements about the company or employed devices to defraud or deceive stockholders in violation of the Securities Exchange Act of 1934 and common law. The complaint seeks permission to proceed as a class on behalf of persons who purchased shares of the company's common stock between Aug. 13, 1991 and March 3, 1992. The complaint seeks compensatory damages in an unspecified amount, plus interest, costs and such other relief as the court deems appropriate. The company intends to vigorously defend both actions. American Dental Laser, with headquarters in Troy, develops high- technology products for dentistry and distributes them worldwide. The company currently distributes dental lasers and intraoral dental video cameras. ADL stock is traded under the NASDAQ symbol ADLI. -0- 4/15/92 /CONTACT: Eric Fris, chief financial officer, 313-637-3713, or Raymond F. Winter, corporate counsel, 313-637-3726, both of American Dental Laser/ (ADLI) CO: American Dental Laser, Inc. ST: Michigan IN: MTC SU:
DH -- DE001 -- 8498 04/15/92 08:41 EDT
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|Date:||Apr 15, 1992|
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