A class action has been filed against Immucor, Inc. (BLUD), certain of its officers and directors by stockholders who purchased the company's common stock between January 7, 2005 and August 29, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

According to a press release dated August 31, 2005, the Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"), and Rule 10b-5 promulgated thereunder. During the Class Period, the complaint claims that Defendants misrepresented that Immucor's financial statements and disclosures fairly and accurately reflected the Company's results of operations as required by Generally Accepted Accounting Principles ("GAAP") and the Exchange Act. The Complaint also charges that Defendants' Sarbanes-Oxley certifications during the Class Period were also false and misleading, as the Company, knowingly or with severe recklessness, lacked adequate internal controls and failed to keep proper books and records in violation of their well publicized Code of Corporate Conduct.

The nature of Defendants' fraud began to come to light on August 26, 2005 when the Company was forced to announce that the Securities and Exchange Commission (the "SEC") had launched a formal investigation into payments made by its Italian unit and its president, Defendant De Chirico, in October 2003 to a physician connected with a hospital with which the Company was doing business. After the market closed on August 29, 2005, the Company revealed further that its Chief Financial Officer had resigned, that it would be revising its previously issued results for at least two quarters in order to account for a previously unrecorded accrued bonus, and that its Form 10-K for fiscal year 2005 would be further delayed due to additional accounting and auditing procedures the Company claimed was necessary to properly reflect the accrued bonus and to render the internal controls report required by Section 404 of Sarbanes Oxley.

In response to this news, the price of BLUD common stock dropped from a closing price of $28.61 on August 25, 2005 before the market learned of the SEC's formal investigation to close at $24.00 per share on August 30, 2005. A staggering 6 million shares of BLUD common stock were traded on August 30, 2005 alone. This volume is nearly ten times the average daily volume.

The complaint further alleges that during the first six months of 2005, Immucor insiders sold approximately 186,000 shares for proceeds of about $4,970,000. During this time, Defendants led the market to believe that the internal control issue involving the Italian subsidiary was "an isolated event" that was not expected to lead to more than a $350,000 fine and increased investigation expenses that had already been factored into the Company's bottom line. In fact, however, the opposite was true. Immucor's internal control problems, as the market later learned, were not confined to its Italian subsidiary and did not center solely around this alleged "isolated event."

If you bought Immucor, Inc. securities between January 7, 2005 and August 29, 2005, inclusive, and would like to obtain information about the Immucor, Inc. lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.