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PROBLEMS
AT AMERISOURCEBERGEN (NYSE: ABC)
May
30,
2007 |
On April 24, 2007, AmerisourceBergen Corp (NYSE: ABC)
disclosed that the U.S. Drug Enforcement Administration
(DEA) had temporarily suspended its Orland, Florida
Distribution Center’s license to distribute DEA
controlled substances and listed chemicals.
Specifically, the DEA believed that the cough
suppressant and painkiller hydrocodone was improperly
sold to four Internet pharmacies. The DEA asserts that
AmerisourceBergen did not maintain effective controls
against diversion of controlled substances,
specifically hydrocodone, to four internet pharmacies
from January 1, 2006 to January 31, 2007.
It appears that investors who purchased AmerisourceBergen
Corp. between January 1, 2006 and April 24, 2007.
may be affected.
IPO Troubles for Allot Communications (NASDAQ: ALLT) Investors
In its Registration Statement and Prospectus, Allot
Communications Ltd. (NASDAQ:ALLT) represented that it
would achieve its goal in becoming the leader in its
industry through its ability to market and sell its
products to end-customers through its channel partners.
In fact, it now appears that at the time of the IPO,
Allot was experiencing materially declining sales
in its indirect distribution channels, such as
enterprise, education and smaller ISP customers,
in North America.
Specifically, in February 2006, Allot represented
to investors that the Company expected net revenues
for the first quarter of 2007, which is traditionally
slow in its sector, to be similar to the level of
the fourth quarter of 2006 revenues, with growth to
resume in the second quarter of 2007 and continue
through the remainder of the year. Earnings per diluted
share for the first quarter of 2007 would be similar
to the fourth quarter of 2006. For the year 2007, the
Company anticipated net revenues in the range of
$43-47 million, with earnings per diluted share,
excluding the effect of share-based compensation,
of between $0.27-$0.33 per share.
Then, on April 2, 2007, Allot issued a press
release announcing that revenues and earnings for the
first quarter of 2007 and the 2007 fiscal year would
be materially lower than its previous guidance.
Allot explained that “weakness in sales from some of
the Company’s distributors, principally in the
Americas, which are focused on sales to enterprise,
education, and smaller ISPs, had resulted in lower
than expected revenues.”
In response to the announcement about the Company’s
revised guidance, on April 2, 2007, the price of
Allot stock declined from $9.15 per share to $7.11
per share – approximately 40% below the IPO price –
on heavier than usual volume.
Investors who purchased the common stock of Allot
pursuant to the Company’s initial public offering on
or about November 15, 2006 pursuant to Allot’s
Registration may be affected..
BKF Capital Group, Inc. (NYSE: BKF)
On October 18, 2005, the Company disclosed that its
financial reports were not reliable and that the
financial reports dating back to the beginning of
2004 would need to be restated. These disclosures
caused the price of BKF stock to decline over $7.40
per share in one day, a drop of over 30%. Investors
who purchased between May 10, 2004 and October 18,
2005 are affected.
Other cases under investigation
Sterling Financial Corp. (NASDAQ: SLFI)
Choice Hotels (NYSE: CHH)
Jackson Hewitt Tax Service, Inc. (NYSE: JTX)
Transaction Systems Architects, Inc. (NASDAQ: TSAD)
Gulf Island Fabrications, Inc. (NASDAQ: GIFI)
Now with respect to securities cases that have recently settled. 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 share of any settlement.
Catalina Marketing Corp. (POS)
Class Period: October 14, 1999 to August 25, 2003
Claim Deadline: May 21, 2007
Claims Administrator: Gilardi
Spear & Jackson, Inc. (SJCK)
Class Period: February 1, 2002 to April 1, 2003
Claims Deadline: June 26, 2007
Claims Administrator: Garden City
Information regarding other recent settled cases, including the cases listed below can be found at www.securitiessleuth.com.
Winstar Communications (WCII)
Ibis Technology Corp. (IBIS)
Astropower, Inc. (APWR)
Again, 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 http://securitiessleuth.typepad.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
http://www.cartville.com/app/join.asp?MerchantID=47994.
Warmest regards,
Mark McNair
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SLEUTH |