Several purported shareholder class action lawsuits have been filed against PainCare Holdings, Inc. and certain of its executive officers alleging that 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.

The complaint further alleges that 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.

The lawsuit has been filed on behalf of all persons who purchased or otherwise acquired the publicly traded securities of PainCare Holdings, Inc. during the Class Period. Also included are all those who acquired PainCare in a secondary offering in October of 2004, or through the acquisitions of Dynamic, Denver Pain, PainCare, Inc., Amphora, REC, Inc., PHS Alpha, Center for Pain Management or Desert Pain.

If you bought PainCare Holdings, Inc. securities between August 27, 2002 and March 15, 2006, inclusive, and would like to obtain information about the PainCare Holdings, Inc. lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.