| Company: | World Health Alternatives, Inc. |
| Ticker Symbol: | OTC BB: WHAI.OB |
| Class Period: | August 23, 2004, to August 18, 2005 |
| Date Filed: | Aug-25-05 |
| Lead Plaintiff Deadline: | Oct-24-05 |
| Court: | Southern District, FL |
| Allegations: |
A class action lawsuit has been filed on behalf of all persons who purchased or otherwise acquired the securities of World Health Alternatives, Inc. ("World Health" or the "Company") (OTC BB: WHAI.OB) between August 23, 2004, through August 18, 2005.
The action is pending in the United States District Court for the Southern District of Florida against the Company, its former Chief Executive Officer, Richard E. McDonald and the Company's independent auditor, Daszkal Bolton LLP. According to the complaint, defendants violated sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5, by issuing a series of material misrepresentations to the market during the Class Period.
The complaint alleges that throughout the Class Period, Defendants made false and misleading statements to artificially inflate the value of World Health stock, statements which the Company now admits require restatement. On August 19, 2005, the Company announced that it had commenced an investigation into a series of manipulations of the Company's published financial statements and operating results. The Company identified at least four major discrepancies: (1) misstatements of the amount of the Company's outstanding shares; (2) its failure to properly account for convertible debt and warrant agreements; (3) its underpayment of tax liabilities in the amount of $4 million; and (4) misstatements to Company lenders resulting in $6.5 million in excess funding under the loan agreements. As a result of this activity, the Company has terminated its outside auditor, Daszkal Bolton LLP, Defendant McDonald has resigned as CEO, it has retained outside counsel and the Board of Directors has retained special counsel to assist it with its investigation. The Company will be restating its prior financial statements due to the material misstatements outlined above and has warned investors not to rely on the information contained therein.
The Company's restatement announcement shocked the market and the price of its common stock plummeted an astonishing 86% on August 19, 2005, trading as low as $0.25 per share after closing on August 18, 2005 at $1.85 per share. Trading on a volume 15 times greater than its average, on August 19, 2005, 32 million shares changed hands.
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.
At LawyersandSettlements.com, it is our goal to keep you informed about important legal cases and settlements. We are dedicated to helping you resolve your legal complaints.
The action is pending in the United States District Court for the Southern District of Florida against the Company, its former Chief Executive Officer, Richard E. McDonald and the Company's independent auditor, Daszkal Bolton LLP. According to the complaint, defendants violated sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5, by issuing a series of material misrepresentations to the market during the Class Period.
The complaint alleges that throughout the Class Period, Defendants made false and misleading statements to artificially inflate the value of World Health stock, statements which the Company now admits require restatement. On August 19, 2005, the Company announced that it had commenced an investigation into a series of manipulations of the Company's published financial statements and operating results. The Company identified at least four major discrepancies: (1) misstatements of the amount of the Company's outstanding shares; (2) its failure to properly account for convertible debt and warrant agreements; (3) its underpayment of tax liabilities in the amount of $4 million; and (4) misstatements to Company lenders resulting in $6.5 million in excess funding under the loan agreements. As a result of this activity, the Company has terminated its outside auditor, Daszkal Bolton LLP, Defendant McDonald has resigned as CEO, it has retained outside counsel and the Board of Directors has retained special counsel to assist it with its investigation. The Company will be restating its prior financial statements due to the material misstatements outlined above and has warned investors not to rely on the information contained therein.
The Company's restatement announcement shocked the market and the price of its common stock plummeted an astonishing 86% on August 19, 2005, trading as low as $0.25 per share after closing on August 18, 2005 at $1.85 per share. Trading on a volume 15 times greater than its average, on August 19, 2005, 32 million shares changed hands.
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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