NEW YORK, May 16, 2003 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Eastern District of New York on behalf of all purchasers of Allou Healthcare Inc. ("ALU" or the "Company") (AMEX:ALU) securities between July 3, 2002 and April 9, 2003, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's website at www.faruqilaw.com
The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning Allou's financial results and business prospects and/or omitting to disclose material facts necessary to correct these statements. Specifically, the complaint alleges that Allou failed to disclose, among other facts, that: (i) the Company was materially overstating its accounts receivables, resulting in an overstatement of revenues and earnings; (ii) that Allou was materially overstating its inventory, thus inflating its net worth; and (iii) the Company's financial statements were not prepared in conformity with Generally Accepted Accounting Principles ("GAAP"). As a result, the price of the Company's securities were artificially inflated during the Class Period. On April 24, 2003, however, the Company filed with the SEC a Form 8-K which admitted that Allou had overstated it inventory by approximately $35 million and its accounts receivable by approximately $75-$80 million.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Allou securities between July 3, 2002 and April 9, 2003, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website at www.faruqilaw.com
If you purchased Allou securities during the Class Period, you may, not later than July 1, 2003, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail: Avozzolo@faruqilaw.com TICKER: AMEX: ALU
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca