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Purchasers of Ciphergen Biosystems, Inc. (NasdaqNM: CIPHE)
were stunned on November 16, 2005. That day, Ciphergen
disclosed that its Audit Committee had determined that the
Company's previously reported results for the quarter ended
June 30, 2005 should no longer be relied upon and would
need to be restated because revenue was recognized on
certain transactions 'in a manner inconsistent with the
Company's revenue recognition policy.' Specifically, the
Company indicated that the restatement would reduce
previously reported revenues for said quarter by $503,000,
or 7%, and result in an increase in the Company's previously
reported net loss for said quarter by $301,000 or 3%.
In addition, the Company also advised that the Audit
Committee's investigation was not yet complete and that it
was also 'reviewing the appropriateness of revenue
recognition in connection with certain transactions that took
place in the fourth quarter of fiscal 2004 and in fiscal 2005.'
On November 17, 2005, as a result of these disclosures,
the complaint alleges that the price of Ciphergen common
stock declined from a prior day close of $1.73 to close at
$1.36 per share, a decline of approximately 21%, on
unusually heavy volume.
Investors who purchased the common stock of Ciphergen
between August 8, 2005 and November 16, 2005, are affected.
If you are an affected investor in Ciphergen or any of the cases
under investigation listed below, you are encouraged to contact
Mark McNair at at 877-511-4717 or e-mail
info@securitiessleuth.com to discuss your options.
Cases Under Investigation
SFBC International Inc. (Nasdaq: SFCC) 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. Investors, who purchased SFCC between
August 4, 2003 through November 1, 2005, are affected
by the recent revelations.
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. Finkbeiner,
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
Ultimate Electronics, Inc. (ULTE)
Class Period: May 1, 2002 to August 26, 2002
Claims Deadline: January 27, 2006
Claims Administrator: Gilardi
Metromedia Fiber Network, Inc. (MFNX)
Class Period: January 8, 2001 to July 2, 2001
Claims Deadline: January 27, 2006
Claims Administrator: Gilardi
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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