|
SECURITIES SLEUTH - JANUARY 25, 2005
PRA INTERNATIONAL AND INSIDER SELLING
PRA International (PRAI) is based in Reston, Virginia
and operates as a contract research organization
providing product development services for pharmaceutical
and biotechnology companies worldwide.
On January 11, 2005, before the opening of the market,
PRA International disclosed that it expected 2005 revenue
of about $295 million and earnings per share of about
$1.30, which is below its prior guidance. The Company
attributed its missed guidance to “delayed initiation of
three major contracts and the timing of execution of
certain change orders.”
There was significant insider selling in the 2 months prior
to the disclosure on January 10, 2006. Specifically, insiders
sold approximately 230,000 shares for proceeds of
approximately $6.3 million. Moreover, the Company‘s CFO
sold 100% of his PRA International stock that was held at the
beginning of the period.
Investors who purchased between October 26, 2005 and
January 10, 2006, are affected.
Dominion Home Troubles
Ohio-based Dominion Homes (DHOM) offers single-family
homes in central Ohio, as well as in Louisville and
Lexington, Kentucky. The Company is under investigation
by state and federal regulators concerning its mortgage
operations.
In particular, Dominion is under investigation for an abnormally
high default rate on mortgages used to purchase Dominion
properties.
According to the Columbus Dispatch, the Ohio attorney general's
office has subpoenaed records regarding Dominion mortgages
and the U.S. Department of Housing and Urban Development
also is looking into Dominion's mortgage practices.
The Columbus Dispatch, has run a series of articles outlining
the schemes used by the Company. One well-documented
scheme involved Dominion’s charging premiums for mortgage
insurance for FHA loans that the Company knew did not exist.
Also, it appears that this company was arranging financing for
buyers of its properties for buyers who were not qualified in
order to inflate its earnings. On December 30, 2005, the
company’s CFO and senior VP of Finance resigned.
On January 13, 2006, Dominion Homes disclosed that its sales
fell 24.4 percent in 2005. Investors who purchased between
July 9, 2003 and January 12, 2006, are affected.
Nautilus Stock Plunges
Washington-state based Nautilus, Inc. (NLS) and its subsidiaries
engage in the marketing, development, and manufacture of
branded health and fitness products.
On Januay 18, 2006, before the opening of the market, the
Company disclosed that it expected fourth quarter 2005 net
sales in the range of $179-183 million and earnings per share
in the $0.07-0.12 range. Previously, on November 2, 2005,
the Company provided fourth quarter 2005 guidance of net
sales of $210 million and earnings per share in the
$0.44-0.48 range.
The market reacted strongly to the news and the stock
plunged almost 25%. Investors who purchased Nautilus
between April 27, 2005 and January 16, 2006 are affected.
If you are an affected PRA International, Dominion Homes,
Nautilus investor or an affected investor in any of the cases
listed below under investigation that are briefly summarized
below, you may wish to contact us at info@securitiessleuth.com.
Cases Under Investigation
Tumbleweed Communications Corp. (TMWD)
On January 9, 2006, the Company disclosed that it expected a
net loss of $.01 to $.02 per share instead of a profit and that
its CEO and Chairman resigned. On January 10, 2006, the
Company’s stock tumbled 20%. Investors who purchased the
stock between October 19, 2005 and January 9, 2006, are affected.
Terayon Communications Systems, Inc. (TERNE)
The Company has announced a series of negative developments,
including that it may restate its financial statements for prior
periods. Investors who purchased between October 28, 2004
and January 10, 2006, are affected.
Bausch & Lomb (BOL)
At the end of December the Company indicated that it would
restate its financial results dating back to 2000 following an
investigation into improper conduct by management of its
Brazilian subsidiary.
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 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 and November 1, 2005 are
affected by the recent revelations.
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
|
