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Each year at this time, tens of millions of Americans are
fixated on the NCAA Basketball tournament - so-called
March Madness. Countless man-hours are spent tracking
results of the tournament.
Meanwhile, there is another March madness going on.
Auditors throughout the US are reviewing countless company
reports and deciding whether to certify the financials of the
various companies they audit.
This March, as in prior years, the result is the same.
Numerous delays in SEC filings have already occurred and,
of course, more troubling corporate restatements. Many
investors better hope they win the office basketball pool
because they are going to have much larger losses when
companies in which they are invested restate their earnings.
Most investors will stay focused on basketball this March.
Expect your co-workers to tell you that they feel great
because they picked Bradley, Wichita State or George
Mason. Don't expect them to talk about Corporate March
Madness and to tell you that their hot picks -- American
Service Group, ProQuest and Chicago Bridge & Iron just
restated --- and tanked.
Best of luck in your basketball bracket. But even if you lose,
it's only a couple of bucks. Where you need really need to
be fortunate is in your investments and hope that not many
too companies you have selected as investments restate.
Below is some information about companies that have
recently restated. Remember, we can't help you recover
your losses in the basketball tournament. However, if you are
an affected investor in any of the following companies and
you contact info@securitiessleuth.com or 877.511 4717, we
can review your options to recover losses in companies that
have restated.
America Service Group Inc. (ASGRE) On March 15, 2006,
the Company disclosed that it will it will restate previously
filed financial statements for the years ended
December 31, 2001 through December 31, 2004 and for
the first six months of 2005. The U.S. Attorney for the Middle
District of Tennessee is also conducting an inquiry. Not
surprisingly, its stock plummeted 29% the following day.
Investors who purchased its stock between April 25, 2001
and March 15, 2006, probably are affected.
Global Power Equipment (GEG) On March 9, 2006, the Company
announced that its gross profits were overstated for two
China projects and that a restatement is required.
Since May 9, 2005, its stock is down 57%. It appears that
investors who purchased between Global Power Equipment
between April 26, 2004 and March 5, 2006, are affected.
Allion Healthcare, Inc. (ALLI) On March 9, 2006, the
Company disclosed that it expects to restate its financial
results for the quarter ended June 30, 2005 and the nine
months ended September 30. The following day, its stock
plummeted. It appears that investors who purchased Allion
Healthcare between June 22, 2005 and March 9, 2006, are
affected.
GMH Communities Trust (NYSE: GCT) On March 13, 2006,
the Company’s shares tumbled 25% after it disclosed,
among other things, that it is revising downward its earnings
guidance for 2005 and withdrawing its previously issued
earnings guidance for the year ending December 31, 2006.
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. Investors who purchased
stock between May 5, 2005 and March 10, 2006, are affected.
PainCare Holdings, Inc. (Amex: PRZ) The Florida-based
provider of medical and surgical solutions and services
disclosed that Audit committee determined that the Company
will restate its historical financial statements for the years
ended December 31, 2000, December 31, 2001,
December 31, 2002, December 31, 2003 and
December 31, 2004, and the quarters ended March 31, 2005,
June 30, 2005 and September 30, 2005. On March 16, 2006,
shares of PRZ declined from $2.86 to $2.50 per share or 13%.
As of March 21, 2006, shares are trading at approximately
$1.57 per share, down approximately 45% since
March 15, 2006. Investors who purchased PRZ between
August 27, 2002 and March 15, 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.
Merge Tech Inc. (MRGE) On Friday, March 17, Merge
Technologies Inc., which does business under the name
Merge Healthcare, announced it plans to restate sales and
earnings figures and will delay filing its Form 10-K annual
report for 2005. Its stock plummeted 12% on this news.
Investors who purchased between January 18, 2005 and
March 17, 2005, are affected.
Nature's Sunshine Product, Inc. (NATRE) On March 20, 2006,
Natures Sunshine disclosed that the Company may restate
it financial results for the first three quarters of 2005 and the
years 2002 through 2004 and it would likely be delisted from
NASDAQ. Investors who purchased between
February 25, 2004 and March 17, 2006, are affected.
PHH Corporation (PHH) Shares of PHH fell after the Company
announced that it would be delaying filing of its Form 10-K
with the SEC because of accounting adjustments related to
its spin-off from Cendant Corp. Investors who purchased
PHH between May 12, 2005 and March 1, 2006, are affected.
Bausch & Lomb (BOL) At the end of December 2005, 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. Investors
who purchased BOL between January 27, 2006 and
December 22, 2005, 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.
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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