Shareholder Class Action Filed Against SeraCare Life Sciences, Inc. by the Law Firm of Schiffrin & Barroway, LLP
December 23 2005 - 5:00PM
PR Newswire (US)
RADNOR, Pa., Dec. 23 /PRNewswire/ -- The following statement was
issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the
United States District Court for the Southern District of
California on behalf of all securities purchasers of SeraCare Life
Sciences, Inc. (NASDAQ:SRLSE) ("SeraCare" or the "Company") from
February 9, 2005 through December 19, 2005, inclusive (the "Class
Period"). If you wish to discuss this action or have any questions
concerning this notice or your rights or interests with respect to
these matters, please contact Schiffrin & Barroway, LLP (Darren
J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at
1-888-299-7706 or 1-610-667-7706, or via e-mail at . The complaint
charges SeraCare and certain of its officers and directors with
violations of the Securities Exchange Act of 1934. SeraCare engages
in the manufacture and provision of biological products and
services for diagnostic, therapeutic, drug discovery and research
organizations worldwide. The complaint alleges that defendants'
Class Period representations regarding SeraCare's financial
statements, business, and prospects were materially false and
misleading when made. Specifically, the defendants failed to
disclose: (1) that the Company, in violation of its own revenue
recognition accounting policies and practices, improperly
recognized revenue which served to materially inflate the Company's
financial results; (2) that the accounting for and valuation of the
Company's inventory was faulty; (3) that the defendants failed to
prevent certain board members from exerting undue influence on the
Company's financial reporting process and on the audit process; (4)
that throughout the Class Period, the timeliness, quality and
completeness of the Company's implementation and testing of its
internal controls over financial reporting was lacking, such that
the Company lacked adequate internal control; and (5) that the
Company's financial statements were presented in violation of
Generally Accepted Accounting Principles ("GAAP"). On December 14,
2005, SeraCare filed a current report on Form 8-K wherein it stated
that the Company was unable, without unreasonable effort and
expense, to file its annual report on Form 10-K for its fiscal year
ended September 30, 2005. Then, on December 20, 2005, before the
market opened, the Company announced that "the chairman of the
Company's audit committee has received a letter from Mayer Hoffman
McCann P.C. (MHM), the Company's independent auditors, in which MHM
raised concerns with respect to the Company's financial statements,
accounting documentation and the ability of MHM to rely on
representations of the Company's management." In reaction to this
announcement, the price of SeraCare stock fell dramatically, from
$19.30 per share on December 19, 2005 to $10.04 per share on
December 20, 2005, a one-day drop of 47.98 percent on unusually
heavy trading volume. Plaintiff seeks to recover damages on behalf
of class members and is represented by the law firm of Schiffrin
& Barroway, which prosecutes class actions in both state and
federal courts throughout the country. Schiffrin & Barroway is
a driving force behind corporate governance reform, and has
recovered billions of dollars on behalf of institutional and
individual investors from the United States and around the world.
For more information about Schiffrin & Barroway, or to sign up
to participate in this action online, please visit
http://www.sbclasslaw.com/. If you are a member of the class
described above, you may, not later than February 21, 2006, move
the Court to serve as lead plaintiff of the class, if you so
choose. 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 Schiffrin &
Barroway, or other counsel of your choice, to serve as your counsel
in this action. CONTACT: Schiffrin & Barroway, LLP Darren J.
Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road
Radnor, PA 19087 1-888-299-7706 (toll-free) or 1-610-667-7706 Or by
e-mail at DATASOURCE: Schiffrin & Barroway, LLP CONTACT: Darren
J. Check, Esq. or Richard A. Maniskas, Esq., both of Schiffrin
& Barroway, LLP, +1-888-299-7706, +1-610-667-7706 or Web site:
http://www.sbclasslaw.com/
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