| Company: | America Service Group, Inc. |
| Ticker Symbol: | NASD: ASGRE |
| Class Period: | September 24, 2003 to March 16, 2006 |
| Date Filed: | Apr-07-06 |
| Lead Plaintiff Deadline: | Jun-05-06 |
| Court: | Middle District, TN |
| Allegations: |
A lawsuit has been filed in the United States District Court for the Middle District of Tennessee, on behalf of persons who purchased or otherwise acquired publicly traded securities of America Service Group, Inc. ("America Service" or the "Company") (NASDAQ:ASGRE) between September 24, 2003 to March 16, 2006, inclusive, (the "Class Period"). The lawsuit was filed against America Service and certain officers and directors of the Company ("Defendants").
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. The complaint alleges that the Company and certain officers and directors issued numerous false and misleading statements about the Company's financial condition. In particular, the Company failed to disclose or misrepresented that: America Service was not charging its customers in accordance with their contracts; That America Service failed to properly credit customers with discounts, rebates, and price concessions; That the Company failed to provide customers with appropriate credits for returned pharmaceutical products; That the Company inappropriately established and utilized reserves to help the Company more closely meet its budgeted results.
On March 15, 2006, after the markets closed, America Service announced the findings of an internal investigation into the Company's practices. Consequently, based upon the results of the investigation, the Company will restate earnings for the years ended December 31, 2001, through December 31, 2004 and for the first six months of 2005, and issue refunds, of $3.6 million to customers where it failed to appropriately credit their accounts. In reaction to the news, shares fell $5.65 per share, or approximately 29%, to close at $13.95 per share.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
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. The complaint alleges that the Company and certain officers and directors issued numerous false and misleading statements about the Company's financial condition. In particular, the Company failed to disclose or misrepresented that: America Service was not charging its customers in accordance with their contracts; That America Service failed to properly credit customers with discounts, rebates, and price concessions; That the Company failed to provide customers with appropriate credits for returned pharmaceutical products; That the Company inappropriately established and utilized reserves to help the Company more closely meet its budgeted results.
On March 15, 2006, after the markets closed, America Service announced the findings of an internal investigation into the Company's practices. Consequently, based upon the results of the investigation, the Company will restate earnings for the years ended December 31, 2001, through December 31, 2004 and for the first six months of 2005, and issue refunds, of $3.6 million to customers where it failed to appropriately credit their accounts. In reaction to the news, shares fell $5.65 per share, or approximately 29%, to close at $13.95 per share.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
