Geller Rudman, PLLC Announces Class Action Lawsuit Against Abatix
Corp. on Behalf of Investors
NEW YORK, May 3 /PRNewswire/ -- The Law Firm of Geller Rudman, PLLC announced
today that a class action lawsuit has been filed in the United States District
Court for the Northern District of Texas on behalf of purchasers of the
securities of Abatix Corp. ("Abatix" or the "Company") between 5:05 p.m. Eastern Standard Time ("EST") on April 14, 2004 and 8:24 a.m. EST on April 21,
2004, inclusive (the "Class Period"). A copy of the complaint filed in this
action is available from the Court, or can be viewed on the firm's website at
http://www.geller-rudman.com/ .
The complaint charges that Abatix and Terry W. Shaver violated Sections 10(b)
and 20(a) of the Exchange Act, and Rule 10b-5 promulgated thereunder, by
issuing a series of material misrepresentations to the market during the Class
Period. More specifically, the complaint alleges that defendants' statements
during the Class Period failed to disclose and misrepresented the following
material adverse facts which were then known to defendants or recklessly
disregarded by them: (1) the Company had not verified the proprietary nature of
RapidCool or that the Company had in fact, obtained the "exclusive worldwide
rights to distribute RapidCool;" (2) that Abatix had not verified that Goodwin
Group LLC was the assignee of patents relating to RapidCool products, nor had
defendants verified the ownership of any patent applications filed with respect
to the product line; and (3) defendants knew but failed to disclose that they
had only been permitted to perform limited due diligence on the proprietary
nature of RapidCool products before signing the distributorship agreement.
On April 16, 2004, NASDAQ issued a press release announcing that it was halting
trading in Abatix common stock for "additional information requested." Then, on
April 21, 2004, Abatix issued a press release entitled "Press Release
Clarification." The press release stated in pertinent part as follows: "The
April 14, 2004 press release made claims as to the proprietary nature,
uniqueness, and efficacy of the products in the RapidCool(TM) line, and that
the Company would be undertaking third party testing to substantiate efficacy. Following the issuance of the April 14, 2004 press release there was a
significant increase in the price and volume of shares traded of Abatix stock
which Abatix believes was not warranted by Company developments." Shortly after the issuance of the press release, NASDAQ released the halt on
trading of Abatix common stock and the price of Abatix common stock dropped
precipitously, falling from $16.70 per share to $9.77 per share on extremely
heavy volume.
If you bought securities of Abatix between 5:05 p.m. EST on April 14, 2004 and
8:24 a.m. EST on April 21, 2004, and you wish to serve as lead plaintiff, you
must move the Court no later than June 22, 2004. If you are a member of this
class, you can join this class action online at
http://www.geller-rudman.com/cases.asp . Any member of the purported class may
move the Court to serve as lead plaintiff through Geller Rudman or other
counsel of their choice, or may choose to do nothing and remain an absent class
member.
Geller Rudman, PLLC is a national law firm that represents investors and
consumers in class action and corporate governance litigation. It is one of
the country's premier firms in the area of securities fraud, with in-house
finance and forensic accounting specialists and extensive trial experience. Since its founding, Geller Rudman, PLLC has grown to become one of the most
respected and successful firms representing investors and consumers in class
action litigation. The firm came of age under the client focused realities of
the Private Securities Litigation Reform Act of 1995, which provided new
opportunities for institutional investors to assume leadership in combating
securities fraud.
The firm's lawyers have achieved substantial recoveries for aggrieved investors
and consumers in class action lawsuits prosecuted in state and federal courts
throughout the nation. Geller Rudman, PLLC maintains a widely recognized
reputation for excellence, as courts have repeatedly appointed the firm to
major positions in intricate multi-district or consolidated litigations. In
this regard, Geller Rudman, PLLC has successfully pursued hundreds of class
action lawsuits, has taken a lead role in numerous complex litigations on
behalf of defrauded investors and consumers and has been responsible for
billions in recoveries as well as landmark corporate governance changes. The
firm maintains offices in Boca Raton and New York.
If you have any questions about how you may be able to recover for your losses,
or if you would like to consider serving as one of the lead plaintiffs in this
lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's
website at http://www.geller-rudman.com/ .
Contact:
GELLER RUDMAN, PLLC
Samuel H. Rudman, Esq. or David A. Rosenfeld, Esq.
Client Relations Department:
200 Broadhollow, Suite 406
Melville, NY 11747
Phone: 1-631-367-7100
Toll Free: 1-877-992-2555
Fax: 1-631-367-1173
E-mail: DATASOURCE: Geller Rudman, PLLC CONTACT: Samuel H. Rudman, Esq. or David A. Rosenfeld, Esq., both of Geller Rudman, PLLC, +1-631-367-7100 Web site: http://www.geller-rudman.com/ http://www.geller-rudman.com/cases.asp
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