Wolf Haldenstein Adler Freeman and Herz LLP Commences Class
Action Lawsuit on Behalf of Abatix Corporation Shareholders
NEW YORK, May 11 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP
filed a class action lawsuit in the United States District Court for the
Northern District of Texas, on behalf of all persons who purchased the
securities of Abatix Corporation ("Abatix" or the "Company") between April 14,
2004 at 5:05 p.m. EDT to April 21, 2004 9:27 a.m. EDT, inclusive, (the "Class
Period") against defendants Abatix and certain officers of the Company.
The case name is Teal v. Abatix Corporation, et al. A copy of the complaint
filed in this action is available from the Court, or can be viewed on the Wolf
Haldenstein Adler Freeman & Herz LLP website at
http://www.whafh.com/cases/abatix.htm.
The complaint alleges that defendants violated the federal securities laws by
issuing materially false and misleading statements throughout the Class Period
that had the effect of artificially inflating the market price of the Company's
securities.
On April 14, 2004, after the close of the market, Abatix announced it had
entered into an exclusive agreement with Goodwin Group, LLC, the developer of
RapidCool products, to distribute a "unique, proprietary line of products
[that] actually removes heat from fire, metal, wood, skin, and other surfaces."
Defendant Terry Shaver exulted the importance of the agreement and confidence
in the product by stating that "Adding new product lines, like RapidCool, is
part of our growth strategy ... We are beginning the process of third party
testing that will remove any questions as to the efficacy of the product and
its non-toxic waste." The statements made by the defendants were materially false and misleading
because they failed to disclose and misrepresented the following adverse facts:
(a) the RapidCool burn cream product was not FDA approved; (b) there were no
previously undisclosed material developments at the point of the halt of their
stock trading because defendants failed to conduct proper due diligence on the
Goodwin Group and the RapidCool product prior to their agreement; (c) the
Goodwin Group had not ever generated any revenue from its RapidCool products;
(d) defendants did not properly ascertain the efficacy of the RapidCool
product; (e) defendants failed to conduct proper due diligence to confirm that
Goodwin Group actually owned the patents it claimed relating to the RapidCool
product; and (f) that, as a result of the foregoing, defendants lacked a
reasonable basis for their positive statements about the Company and their
earnings projections.
Shares of Abatix more than tripled, rising from $5.31 the previous day to close
at $16.70 on April 15, 2004. On April 16, 2004, the NASDAQ Stock Market
announced that trading was halted at 9:26 a.m. Eastern Time until NASDAQ's
request for additional information was satisfied.
If you purchased or otherwise acquired Abatix securities during the Class
Period, you may request that the Court appoint you as lead plaintiff by June
22, 2004. 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." Your ability to share in any recovery
is not, however, affected by the decision whether or not to serve as a lead
plaintiff. You may retain Wolf Haldenstein, or other counsel of your choice,
to serve as your counsel in this action.
Wolf Haldenstein has extensive experience in the prosecution of securities
class actions and derivative litigation in state and federal trial and
appellate courts across the country. The firm has approximately 60 attorneys
in various practice areas; and offices in Chicago, New York City, San Diego,
and West Palm Beach. The reputation and expertise of this firm in shareholder
and other class litigation has been repeatedly recognized by the courts, which
have appointed it to major positions in complex securities multi-district and
consolidated litigation.
If you wish to discuss this action or have any questions, please contact Wolf
Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York
10016, by telephone at (800) 575-0735 (Fred Taylor Isquith, Esq., Christopher
S. Hinton, Esq., George Peters, or Derek Behnke), via e-mail at or visit our
website at http://www.whafh.com/. All e-mail correspondence should make
reference to Abatix. DATASOURCE: Wolf Haldenstein Adler Freeman & Herz LLP CONTACT: Fred Taylor Isquith, Esq., Christopher S. Hinton, Esq., George Peters or Derek Behnke, all of Wolf Haldenstein Adler Freeman & Herz LLP, 1-800-575-0735, Web site: http://www.whafh.com/
|