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Some companies believe the New Year is a good time
to change management. One such company is
Miami-based SFBC International, Inc., (Nasdaq: SFCC).
SFBC International, a drug development services
company, provides a range of early and late stage
clinical drug development services to branded
pharmaceutical, biotechnology, generic drug, and
medical device companies worldwide.
On January 3, 2005, SFBC International announced
that its chief executive is retiring and its president
and chairman resigned. Specifically, the Company
announced that Arnold Hantman is retiring as CEO.
The Company also announced that it accepted the
resignation of Lisa Krinsky, who served as president
and chairman. As a result, SFBC would cut its 2005
financial forecast due to severance charges.
The past few months have been very rough for SFBC
investors. Since November 2, 2005, shares of SFBC,
have plummeted 62%, from $41.49 per share to
$15.78 per share. A series of Bloomberg News articles
reported that SFBC’s lacked adequate quality controls
and, as a result, endangered the safety of patients
enrolled in its test – many of whom are poor immigrants.
Bloomberg also reported that the Company failed to
adequately disclose the risks involved in its drug trials.
As a result of these and other disclosures, shareholder
litigation has been brought against the Company. It
has been alleged that SFBC misrepresented its business
conditions, prospects and financial results to public
investors. Specifically, the Company did not inform
investors that its “financial success” was a result of
business practices that were improper and reckless and
that, when the true facts came to light, the Company
lost its credibility for accurate drug testing. As a
result, besides losing customers, the Company would
be exposed to fines and possible lawsuits from victims
of faulty drugs.
Investors, who purchased SFCC between
February 14, 2004 and November 15, 2005, are affected.
If you are an affected investor in SFBC International or
Poore Brothers or NL Industries that are briefly summarized
below, you may wish to contact us at info@securitiessleuth.com.
Cases Under Investigation
Poore Brothers (NASDAQ: SNAK). On December 19, 2005, the
Arizona-based Company which makes Cinnabon, Tato Skins
and other snack foods stunned the market with a series of
revelations. The Company forecast a fourth quarter loss and
announced that its chief executive officer Thomas W. Freeze
would step down immediately. The Company also announced
that Richard M. Finkbein, its senior vice president and chief
financial officer had stepped down effective
December 15, 2005. These announcements had a dramatic
effect on the market and SNAK shares tumbled 20%.
Investors who purchased Poore Brothers between
February 10, 2005 and December 16, 2005, are affected.
NL Industries (NYSE: NL) On November 14, 2005, NL Industries
disclosed that it will restate its financial statement for the
year ended December 31, 2004 and the quarters ended
March 31, 2005 and June 30, 2005. Investors who purchased
NL stock between May 4, 2004 and November 14, 2005
may be affected.
Now with respect to settled cases. If you are an affected
investor – you purchased any of these stocks during the
relevant class period, you may wish to contact the claims
administrator to obtain additional information. Remember,
if you don’t submit your claim form, you won’t receive your
proportionate share of recovery.
Solectron Corp. (SLR)
Class Period: June 18, 2001 to September 26, 2002
Claims Deadline: March 28, 2006
Claims Administrator: Garden City
NUI Corp. (NUI)
Class Period: November 8, 2001 to October 17, 2002
Claims Deadline: March 7, 2006
Claims Administrator: Garden City
Asia Pulp & Paper Company, Ltd. (APUUY)
Class Period: August 28, 1999 to April 4, 2001
Claims Deadline: March 6, 2006
Claims Administrator: Analytics
Cornell Companies, Inc. (CRN)
Class Period: March 6, 2001 to March 5, 2002
Claims Deadline: March 3, 2006
Claims Administrator: Gilardi
Corvis Corp. (CORV)
Class Period: August 22, 2000 to May 25, 2001
Claims Deadline: January 27, 2006
Claims Administrator: Berdon Claims
Again, if you are affected by a settled case, then you should
contact the claims administrator (rather than us). However,
if you are an affected investor in any of the companies under
investigation, you many wish to contact us so that you
can consider your options.
Likewise, if you happen to be aware of corporate restatements
or other financial fraud -- especially if you're a victim --
you're encouraged to contribute to the Sleuth by giving your
own tip-offs at www.securitiessleuth.com or by e-mailing
info@securitiessleuth.com. You can also call Mark McNair
at 877-511-4717. If you have a friend or colleague you
think would benefit from The Sleuth, please pass along
this issue and ask them to sign up at
www.cartville.com/app/join.asp?MerchantID=47994.
Warmest regards,
Mark McNair
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