| Company: | DVI, Inc. |
| Ticker Symbol: | Pink Sheets:DVIX |
| Class Period: | November 7, 2001 through June 27, 2003 |
| Court: | Eastern District, PA |
| Date Filed: | Sep-03 |
| Lead Plaintiff Deadline: | Sep-29-03 |
| Allegations: |
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, by issuing a series of material misrepresentations to the market between November 7, 2001 and June 27, 2003, thereby artificially inflating the price of DVI's publicly traded securities. The Complaint alleges that these statements were materially false and misleading because they failed to disclose and misrepresented the following adverse facts, among others: (1) that the Company had failed to timely write down the value of certain assets which had become impaired; (2 ) that the Company's accounting and financial reporting policies and procedures for non-systematic (non-recurring) transactions were inadequate; (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 values of the Company's assets, net income and earnings per share were materially overstated at all relevant times
. The Class Period ends on June 27, 2003. On that date, DVI shocked the investing public when it announced that the SEC had rejected its March 30, 2003 quarterly report because it had not been reviewed by an independent auditor. The Company also disclosed that it was continuing to consider the need for the accounting change, and, if adopted, its net income for the third quarter of fiscal 2003, its earnings per share for the first nine months of fiscal 2003 and its net income for the fiscal year 2002 would all be drastically reduced. Specifically, the Company's net income for the third quarter of fiscal 2003 would be reduced by $1.4 million, or 44.47%, its earnings per share for the nine months ended March 31, 2003 would be reduced by $0.10, or 44.45% and its net income for fiscal year ended June 30, 2002 would be reduced by $1.395 million or 34.12%.
Investor reaction was swift and negative, with DVI stock falling from a close of $5.84 on June 26, 2003 to a close of $4.30 on June 27, 2003, or a single-day decline of more than 26% on very high trading volume.
If you acquired the securities of DVI, Inc. during the Class Period you may, no later than September 29, 2003, 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.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
