| Company: | PainCare Holdings, Inc. |
| Ticker Symbol: | AMEX: PRZ |
| Class Period: | August 27, 2002, to March 15, 2006 |
| Date Filed: | Mar-20-06 |
| Lead Plaintiff Deadline: | May-19-06 |
| Court: | Middle District, FL |
| Allegations: |
A class action has been filed on behalf of purchasers of the securities of PainCare Holdings, Inc. (AMEX: PRZ), in the period between August 27, 2002, and March 15, 2006. The lawsuit will be pending in the United States District Court for the Middle District of Florida and names as defendants PainCare and certain of its ranking executives.
The complaint alleges that PainCare and the individual defendants violated the federal securities laws by overstating and exaggerating the company's financial health. In particular, according to the complaint, PainCare went on a buying spree, growing its business by corporate acquisition, but accounting for such acquisitions in violation of Generally Accepted Accounting Principles ("GAAP"). Accordingly, the company overstated its earnings by failing to comply with GAAP in recording its noncash growth. On March 15, 2006, the last day of the class period, the company announced that it would have to restate its financial figures going back to 2000--to its founding--in order to adjust for the improper accounting of its corporate acquisitions.
In the wake of the revelation of the defendants' wrongful conduct, the company's stock sunk to new lows, having recently traded at under $1.75 per share--down from its class period high of $5.25 per share. In just the first day of trading following the announced restatement, PainCare's stock dropped 12.6%, on extremely heavy volume, down over 50% from its class period high.
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 PainCare and the individual defendants violated the federal securities laws by overstating and exaggerating the company's financial health. In particular, according to the complaint, PainCare went on a buying spree, growing its business by corporate acquisition, but accounting for such acquisitions in violation of Generally Accepted Accounting Principles ("GAAP"). Accordingly, the company overstated its earnings by failing to comply with GAAP in recording its noncash growth. On March 15, 2006, the last day of the class period, the company announced that it would have to restate its financial figures going back to 2000--to its founding--in order to adjust for the improper accounting of its corporate acquisitions.
In the wake of the revelation of the defendants' wrongful conduct, the company's stock sunk to new lows, having recently traded at under $1.75 per share--down from its class period high of $5.25 per share. In just the first day of trading following the announced restatement, PainCare's stock dropped 12.6%, on extremely heavy volume, down over 50% from its class period high.
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.
