| Company: | Orthodontic Centers of America, Inc. |
| Ticker Symbol: | NYSE: OCA |
| Class Period: | May 18, 2004, to June 6, 2005 |
| Date Filed: | Jul-22-05 |
| Lead Plaintiff Deadline: | Aug-08-05 |
| Court: | Eastern District, LA |
| Allegations: |
A securities fraud class action lawsuit was filed in the United States District Court for the Eastern District of Louisiana on behalf of purchasers of Orthodontic Centers of America, Inc. ("OCA" or "the Company") (NYSE:OCA) common stock during the period between May 18, 2004, and June 6, 2005 (the "Class Period").
On June 7, 2005, before the opening of trading, OCA shocked the market by announcing it had determined that the amount of patient receivables reported at each of March 31, June 30, and September 30, 2004 was overstated by material amounts. Although the Company said that it has not yet determined the amount by which the receivables were overstated or their impact on patient revenue, the Company announced its Audit Committee's conclusion that, due to these overstatements, the previously issued quarterly financial statements for the first, second and third quarters of 2004 will need to be restated and should no longer be relied upon. OCA also announced that it had discovered other accounting errors, which it was still reviewing, and had placed its Chief Operating Officer, Bartholomew F. Palmisano, Jr., on administrative leave as of June 1, 2005.
In response to this news, OCA stock lost approximately 40% of its value on enormous trading volume of over 9 million shares, dropping $1.57 to close at $2.46. Accordingly, as a result of the Company's misrepresentations, OCA investors have sustained tremendous losses, and stand to lose much more as the full extent and magnitude of the restatement and fraud is disclosed.
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.
On June 7, 2005, before the opening of trading, OCA shocked the market by announcing it had determined that the amount of patient receivables reported at each of March 31, June 30, and September 30, 2004 was overstated by material amounts. Although the Company said that it has not yet determined the amount by which the receivables were overstated or their impact on patient revenue, the Company announced its Audit Committee's conclusion that, due to these overstatements, the previously issued quarterly financial statements for the first, second and third quarters of 2004 will need to be restated and should no longer be relied upon. OCA also announced that it had discovered other accounting errors, which it was still reviewing, and had placed its Chief Operating Officer, Bartholomew F. Palmisano, Jr., on administrative leave as of June 1, 2005.
In response to this news, OCA stock lost approximately 40% of its value on enormous trading volume of over 9 million shares, dropping $1.57 to close at $2.46. Accordingly, as a result of the Company's misrepresentations, OCA investors have sustained tremendous losses, and stand to lose much more as the full extent and magnitude of the restatement and fraud is disclosed.
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.
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