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Perhaps those internal auditors and accountants at
Bausch & Lomb (BOL) need the get their eyes checked.
Or maybe they need to work on their math.
In either event, 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. After
this disclosure, Bausch & Lomb stock took a significant hit.
It has been alleged in class action litigation against the
Company that prior to this revelation, the Company’s top
officers and directors engaged in significant insider trading.
They clearly knew when to sell.
Investors who purchased stock in Bausch & Lomb between
January 27, 2005 and December 22, 2005, are affected.
Global Power Equipment Restates
Global Power Equipment (GEG) is an Oklahoma-based company
that purports to be a leading design, engineering and
manufacturing firm. Last week the Company announced that
it expects to restate fiscal 2004, interim periods for the
second, third and fourth quarters of fiscal 2004 and
quarterly 2005 results. Understandably its stock plummeted
on this news.
It appears the Company was understating its expenses, which
boosted its reported gross profit. Specifically, the Company
stated that it has determined that gross profit was overstated
for two projects in China, and that a restatement is required
that could cumulatively decrease previously reported
operating income.
It appears that investors who purchased Global Power
Equipment between April 26, 2004 and March 8, 2005, are
affected.
Allion Healthcare, Inc. Restates
On March 9, 2006, after the close of trading, New York-based
Allion Healthcare (ALLI) disclosed that it expects to restate its financial
results for the quarter ended June 30, 2005 and the nine months
ended September 30, 2005.
The restatement is to correct its failure to include in its financial
statements an interest expense relating to warrants to purchase
company shares. The Company expects that the restatement
will result in a significant increase in interest expense for the
quarter ended June 30, 2005. Allion stock plummeted almost
20% on this news. It appears investors who purchased Allion
Healthcare between June 22, 2005 and March 9, 2006, are
affected.
Trouble for Investors in a Marylad REIT
GMH Communities Trust (NYSE: GCT) is a publicly-traded
Maryland real estate investment trust (REIT). On
March 13, 2006, before the opening of trading, the Company
disclosed the following: 1) it is postponing the release of its
results for the fourth quarter and year ended
December 31, 2005; 2) it is revising downward its earnings
guidance for 2005 and withdrawing its previously issued
earnings guidance for the year ending December 31, 2006;
3) that the delay relates to an Audit Committee investigation
following its receipt of a letter from the Company's CFO
alleging, among other things, a "tone at the top" problem
within Company management; and 4) that the Audit
Committee investigation revealed evidence of several
material weaknesses in the Company's internal control
over financial reporting.
The market reacted strongly to this news and
GMH Communities Trust shares tumbled 25%. Investors who
purchased stock between May 5, 2005 and March 10, 2006
are affected.
Comverse Technology Inc. (CMVT)
On March 14, 2006, before the opening of trading, Comverse
Technology disclosed: 1) the creation of a special committee
of its Board of Directors to review matters relating to the
company's stock option grants, including, but not limited to,
the accuracy of the stated dates of option grants and whether
all proper corporate procedures were followed; and 2) that
management believes that certain restatements will likely be
required.
Its shares plummeted on this news and it appears that investors
who purchased between May 5, 2005 and March 13, 2006
are probably affected.
Affected investors in any of the above-mentioned stocks or any
of the stocks listed below under investigation may wish to contact
us at info@securitiessleuth.com or 877 511 4717 to discuss
their options.
Cases Under Investigation
H&R Block (HRB). H&R Block Inc. stock plummeted after the
Company announced it will restate earnings for fiscal years
2004 and 2005, as well as the first two quarters of fiscal 2006,
to correct accounting errors. It appears that investors that
purchased H&R Block between August 26, 2003 and
February 22, 2006, are affected.
Terayon (TERNE) On March1, 2006, the Company disclosed
that it was restating its financial statements for the year ended
December 31, 2004 and the first two quarters of the year ended
December 31, 2005. Investors who purchased TERNE between
April 29, 2004 and March 1, 2006, are affected.
ProQuest Company (PQE) On February 9, 2006, the Company
announced that it had discovered material irregularities in its
accounting and would have to restate certain of its previously
issued financial statements. Its stock plummeted on this news.
Investors who purchased ProQuest between January 9, 2003
and February 8, 2006, are affected.
Chicago Bridge &Iron Company (CBI) On February 3, 2006,
CBI fired its Chairman, President and Chief Executive Officer
and disclosed that its expects to issue revised guidance regarding
its results of operations for the year ended December 31, 2005
and that all previous earnings guidance issued by the Company
for 2005 is no longer operative. Investors who purchased CB&I
between March 9, 2005 and February 3, 2006, are affected.
Again, if you are an affected investor in any of these situations
or the Cases Under Investigation, you may wish to contact
Mark McNair at securitiessleuth.com or 877.511.4717 to discuss
your options.
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.
Bristol-Myers Squibb (BMY)
Class Period: October 19, 1999 to March 20, 2002
Claims Deadline: June 30, 2006
Claims Administrator: Garden City
Eaton Vance Corp. (EV)
Class Period: May 25, 1998 to March 15, 1999 and March 13, 2000 to March 2, 2001
Claim Deadline: May 5, 31, 2006
Claims Administrator: Complete Claims
Eagle Building Technologies (EGBT)
Class Period: November 21, 2000 to February 14, 2002
Claims Deadline: May 1, 2006
Claims Administrator: Berdon
eFunds Corporation (EFD)
Class Period: July 21, 20000 to October 24, 2002
Claims Deadline: May 5, 2006
Claims Administrator: Gilardi
Uniroyal Technology Corp (UTCIQ)
Class Period: February 8, 2000 to May 13, 2002
Claims Deadline: June 28, 2006
Claims Administrator: Garden City
Solectron Corp. (SLR)
Class Period: June 18, 2001 to September 26, 2002
Claims Deadline: March 28, 2006
Claims Administrator: Garden City
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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