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Wishing
everyone a Happy and Prosperous New Year,
I
wonder what will happen with regard to corporate
fraud
in the 2006. Will Sarbanes-Oxley encourage
accurate
financial reporting? Or will it be another year
marked
by scores of corporate restatements?
Certainly
2005 has been a year where investors have
been
stunned by a tremendous number of corporate
restatements.
The latest is Bausch & Lomb (NYSE: BOL),
which
indicated last week it would restate certain financial
results
due to accounting improprieties at its Brazilian
subsidiary.
Particularly affected by this announcement
are
investors who purchased Bausch & Lomb in 2005.
If
you are an affected investor in Bausch & Lomb or any
of
the other cases under investigation, you may wish to
contact
us at info@securitiessleuth.com or 877.511.4717
so
that your options can be discussed.
Again,
I wish everyone a Happy and Prosperous New Year.
Cases
Under Investigation
SeraCare
Life Sciences, Inc. (NASDAQ: SRLSE)
On
December 19, 2005 announced that the Company’s
outside
independent auditors, Mayer Hoffman McCann P.C.
(MHM),
had some significant problems with their review
of
the Company. As a result, SeraCare Life Sciences stock
dropped
over 40% that day. Investors who purchased
between
February 9, 2005 and December 19, 2005 are affected.
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’s 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.
Poore
Brothers (NASDAQ: SNAK)
On
December 19, 2005, the Arizona-based Company which
makes
Cinnabon, Tato Skins and other snack foods stunned
the
market with a series of revelations. The Company
forecast
a fourth quarter loss and announced that its
chief
executive officer, Thomas W. Freeze, would step
down
immediately. The Company also announced that
Richard
M. Finkbein, its senior vice president and chief
financial
officer, had stepped down effective
December
15, 2005. These announcements had a
dramatic
effect on the market and SNAK shares
tumbled
20%. Investors who purchased Poore Brothers
between
February 10, 2005 and December 16, 2005,
are
affected.
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.
Asia
Pulp & Paper Company, Ldt. (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
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