The action alleges that the defendants concealed the following facts from the investing public:

• Synovis’ surgical business was not on track for year-to-year growth and was actually declining;
• The company's Peri-Strips were losing market share to a competing device made by Gore-Medical;
• The defendants misled the public as to why Peri-Strips sales fell short, claiming that the number of surgeons qualified to perform procedures had declined, taking sales down as well;
• The company's "interventional" side had little to zero growth prospects.

As a result, the company's projections of fiscal 2004 EPS of $.56-$.60 and revenues of $75-$79 million were false and misleading.

On May 19, 2004, Synovis drastically cut its guidance for fiscal 2004 in a press release which stated: "At the halfway point of the year, we have fallen behind our own expectations and have clearly not met the expectations of the market....While the interventional business showed significant sequential improvement during the second quarter, it is not yet back to fiscal 2003 levels. In the surgical business, several factors affecting the gastric bypass market evolved during the second quarter, constraining recent Peri-Strips sales growth and near-term growth prospects for Peri-Strips use in gastric bypass surgery. The magnitude of the revenue shortfall in the interventional business, combined with changes in the gastric bypass market, significantly reduce the likelihood of the strong year-over-year growth we expected in fiscal 2004."

On this news, Synovis stock fell from a close of $14.65 on May 18, 2004, to a close of $9.25 on May 19, 2004, for a single-day decline of more than 36% on very heavy trading volume.

If you purchased securities issued by Synovis Life Technologies during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by August 16, 2004. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that your claim is typical of the claims of other class members, and that you will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiffs. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain any counsel of your choice to serve as you in this action, or you may choose to do nothing, and remain in the class as a silent member.