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SARBANES
EXTENSION
Wednesday, October 5, 2005 |
Ever since Sarbanes-Oxley was adopted, companies
have complained about the cost. Small companies
complained the most and last month the SEC decided
to give small companies with less than $75 million in
stock another year to meet the internal controls of the act.
This extension will definitely please executives at small
companies, but it is bad news for investors. It is small
companies where internal controls are needed the most.
As regular readers of the Securities Sleuth know, a
disportionate number of accounting irregularities occur
at small companies.
We trust the SEC will not decide next year to grant another
extension. For small companies. it is in the interest of
investors to have internal controls improved as soon as
possible.
Cases Under Investigation
If you're an affected investor in any of these situations,
contact Mark McNair at info@securitiessleuth.com or
877-511-4717 to discuss your options. You can really make a
difference. As a result of your contacts, actions are being
pursued against Symbol Technologies, American Italian Pasta
Company and OCA.
Spectrum Brands (NYSE: SPC)
An Atlanta-based company, projected growth of batteries with
record sales, while insiders sold out. Then the stock dropped
31 percent after the true state of the company was revealed.
Investors who purchased between January 4, 2005, and
September 6, 2005, are affected.
Abercrombie and Fitch (NYSE: ANF)
An insider made massive sales before bad news came out,
specifically selling 1.6 million shares and reaping a profit of
$118 million. Investors who purchased Abercrombie and
Fitch between June 2, 2005, and August 16, 2005, are affected.
Hutchinson Technology (NSDQ: HTCH)
Not related to Hutchison Whampoa, disclosed on August 30,
2005, its true condition. It announced, among other things,
that its gross margins were much lower than previously
estimated. Unbeknownst to investors, while Hutchinson
Technology was touting its prospects and future, corporate
insiders were selling more than $12.1 million in its stock.
Investors who purchased Hutchinson Technology between
October 4, 2004, and August 29, 2005, are affected.
Arbinet-Thexchange (NSDQ: ARBX)
The company painted a rosy picture in its December 16,
2004 initial public offering (IPO). But, in view of a series
of recent disclosures regarding the company's true
financial condition and the ensuing drop in its stock price,
the company has allegedly issued a materially false and
misleading Registration Statement and Prospectus. Investors
who purchased Arbinet-The exchange pursuant or traceable to
Arbinet's December 16, 2004, IPO are affected.
TXU Corp (NYSE: TXU)
The company allegedly violated federal securities
laws and common law fiduciary duties by purchasing certain
Corporate Units (NYSE: TXU PrC) and PRIDES (NYSE: TXU PrD)
without disclosing its plan to dramatically increase the
dividend payout on TXU common stock upon completion of the
tender offer. Specifically, only nine days after the tender
offer expired, TXU adopted a 350 percent increase in its
common stock dividend, resulting in a 20 percent increase in
the common stock price. Class period: September 15, 2004, to
October 13, 2004.
Immucor (NSDQ: BLUD)
On August 26, 2005, the company announced that the
SEC had launched a formal investigation into payments made by
its Italian unit and its president. Three days later, the
company revealed that its CFO had resigned and Immucor would
be revising its previously issued results for at least two
quarters. Class Period: January 7, 2005, to August 29, 2005.
Mannatech (NSDQ: MTEX)
A nutritional supplement developer. On May 9th, a 'Barron's'
(Dow Jones, NYSE: DJ) article disclosed that many of
Mannatech's independent sales associates pushed products
by disseminating misleading information. After the article's
release, its stock dropped 26 percent that day and another
19 percent the following day. Class Period: August 10, 2004,
to May 8, 2005.
World Health Alternatives' (OTC: WHAI)
The company’s stock plummeted 86 percent--trading as low
as $0.25 per share after closing on August 18, 2005 at
$1.85 per share--after the company announced a
restatement and other bad news on August 19, 2005.
Class Period: June 26, 2003, to August 18, 2005.
Settled Cases
Now with respect to settled cases. If you're an affected
investor and purchased any of these stocks during the relevant
class period, 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.
Healthtronics Surgical Services (NSDQ: HTRN)
Class period: January 4, 2000, to July 28, 2003
Claims deadline: December 31, 2005
Claims administrator: Garden City
Contact info: info@gardencitygroup.com or 800-327-3664
Caminus Corp (NSDQ: CAMZ)
Class period: February 12, 2002, to July 8, 2002
Claims deadline: October 26, 2005
Claims administrator: Garden City
Contact info: info@gardencitygroup.com or 800-327-3664
Canadian Superior Energy (AMEX: SNG)
Class period: November 1, 2003, to March 11, 2004
Claims deadline: November 15, 2005
Claims administrator: Gilardi
Contact info: www.gilardi.com or 415-466-0410
Comerica, Inc. (NYSE: CMA)
Class period: July 17, 2002, to October 1, 2002
Claims deadline: November 23, 2005
Claims administrator: Garden City
Contact info: info@gardencitygroup.com or 800-327-3664
Quality Distributions, Inc. (NSDQ: QLTY)
Class period: November 6, 2003, to January 18, 2005
Claims deadline: December 23, 2005
Claims administrator: Garden City
Contact info: info@gardencitygroup.com or 800-327-3664
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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©2005, ALL RIGHTS RESERVED, SECURITIES
SLEUTH
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