Wechsler Harwood Commences Class Action Suit Against DJ Orthopedics, Inc. (NYSE: DJO)
PRNewswire
NEW YORK
Nov 30, 2001
On November 27, 2001, Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") filed the class action lawsuit Kaysen v. Cross, et al., 01-CV-10707 (HB), in the United States District Court for the Southern District of New York. The lawsuit is brought on behalf of all shareholders that acquired the common stock of DJ Orthopedics, Inc. ("Orthopedics" or the "Company") pursuant or traceable to an initial public offering by Orthopedics on or about November 15, 2001, against Orthopedics, certain of its officers and directors and Orthopedics' underwriters. A copy of the complaint filed in this action is available from the Clerk of the Court (located at the Daniel Patrick Moynihan Courthouse, 500 Pearl Street, New York, NY 10007) and Wechsler Harwood.
The complaint alleges that defendants violated Sections 11, 12(a)(2), and 15 of the Securities Act of 1933, by issuing a Registration Statement and Prospectus in connection with an initial public offering of common stock (the "IPO"), which contained materially false and misleading statements and omissions.
Specifically, the complaint alleges that shortly after the commencement of trading on November 15, 2001, the IPO share price dropped precipitously from $17 per share upon news that analysts adjusted downward Orthopedics' fourth quarter earnings forecast. Fourth quarter earnings estimates were touted by defendants in "road shows" to investors prior to the IPO. Defendants did not halt the IPO or trading in the stock, even though the Registration Statement and Prospectus failed to disclose, inter alia, that the fourth quarter estimates were adjusted downward.
The news drove the price of the Company's shares down by at least 10%, to close at $15.25 per share, on heavy trading volume of 7.3 million shares. By its third full day of trading, the Company's shares were down to $13.16 per share, or over 22% off the IPO price.
Plaintiff seeks to recover damages on behalf of class members. If you are a member of the Class described above, and if you meet certain other legal requirements, you may, no later than January 29, 2002, move the Court to serve as a lead plaintiff. 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 the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. S 78u-4).
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (http://www.whhf.com/) contains further information regarding the firm and its involvement in pending and past actions.
If you wish to discuss this action with us, or have any questions concerning this notice or your rights concerning this case, please contact the following:
Wechsler Harwood Halebian & Feffer LLP 488 Madison Avenue 8th Floor New York, New York 10022 Phone: 877-935-7400 (Toll Free) David Leifer, Shareholder Relations Department: dleifer@whhf.com.
SOURCE: Wechsler Harwood Halebian & Feffer LLP
Contact: David Leifer, Shareholder Relations Department of Wechsler
Harwood Halebian & Feffer LLP, +1=877-935-7400, dleifer@whhf.com
Website: http://www.whhf.com/