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Case ID: 5019 | Stocks | 06/03/2008
According to a law firm press release, a class action lawsuit was filed on May 30, 2008 against Tomo Therapy, Inc.
The complaint charges TomoTherapy and certain of its officers and directors with violations of the Securities Exchange Act of 1934. TomoTherapy develops, markets, and sells the Hi-Art system, a radiation therapy system for the treatment of various types of cancers. The complaint alleges that during the Class Period defendants issued a series of materially false and misleading statements regarding TomoTherapy’s revenues and net income. Specifically, the complaint alleges that on February 13, 2008, the Company reported that for fiscal 2008 it “anticipates revenue of $290 million to $310 million and net income per share in the range of $0.34 to $0.39 per diluted share.” Moreover, the Company touted a strong second half 2008 due to “strong order flow in the second half of 2007 and the projected timing of customers’ construction projects.” Unbeknownst to shareholders, defendants knew, or should have known, that a greater percentage of TomoTherapy’s backlogged orders were for multi-unit Hi-Art Systems ordered by for-profit entities who had scheduled delivery of the units sequentially. As a result of this delivery schedule, these units would remain in backlog longer than single-unit orders and delivery would be pushed further back in 2008 and even into 2009. Therefore, TomoTherapy had no reasonable basis for its revenue and net income projections for fiscal 2008 because the Company would not be able to recognize revenue for these multi-unit Hi-Art Systems until late 2008 or 2009. Then, on April 17, 2008, the Company announced its estimated 2008 first-quarter results and revised its fiscal 2008 outlook. Specifically, the Company estimated that 2008 revenues would be in the range of $255 million to $290 million and 2008 net income would be in the range of $0.14 to $0.33 per diluted share. Moreover, the Company reported that it received fewer new sales orders in Europe and that it had to hire a new Managing Director for European and Middle East operations in April 2008. Upon this news, on April 17, 2008, the price of TomoTherapy common stock dropped 32%, to close at $9.10 per share, on extraordinary trading volume in excess of eight million shares. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest A class action has been filed against biopharmaceutical company Titan Pharmaceuticals, Inc. (AMEX: TTP) and certain of its officers and directors by stockholders who purchased the company's common stock between December 1, 1999, and July 22, 2002. 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.
Several class actions have been filed against food and beverage service company Lancer Corporation (NYSE:LAN) and certain of its officers and directors by stockholders who purchased the company's common stock between October 26, 2000, and February 4, 2004. The actions claim 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. Several class actions have been filed against postsecondary education provider ITT Educational Services, Inc. (NYSE:ESI) and certain of its officers and directors by stockholders who purchased the company's common stock between October 16, 2003, and February 25, 2004. The actions claim 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. A class action has been filed against Xybernaut Corporation (NasdaqSC:XYBRE), certain of its officers and directors by stockholders who purchased the company's common stock between March 27, 2003 and April 08, 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. Several class actions have been filed against Eaton Vance Corporation, Inc. (NYSE: EV), Eaton Vance Management, Boston Management and Research, Lloyd George Investment Management (B.V.I.) Limited, and Lloyd George Investment Management (Bermuda) Limited and certain individuals by investors who purchased the shares of Eaton Vance mutual funds between January 30, 1999, to November 17, 2003. The actions claim that the defendants violated federal securities laws by drawing upon the assets of the Eaton Vance Funds to pay brokers to aggressively push Eaton Vance Funds over other funds, and concealing those payments from investors by disguising them as brokerage commissions. Kahn Gauthier Swick, LLC ("KGS") announces that shareholders of Sterling Financial Corporation ("Sterling" or the "Company") (NasdaqGS:SLFI - News) who purchased shares of the Company between April 27, 2004 and May 25, 2007 have until July 24, 2007 to move for appointment as Lead Plaintiff in a securities fraud class action lawsuit currently pending in the United States District Court for the Southern District of New York. No class has yet been certified in this action. |
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