Sfbc (NASDAQ:SFCC)
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Lerach Coughlin Stoia Geller Rudman & Robbins LLP
("Lerach Coughlin") (http://www.lerachlaw.com/cases/sfbc/) today
announced that a class action has been commenced in the United States
District Court for the Southern District of Florida on behalf of
purchasers of SFBC International, Inc. ("SFBC") (NASDAQ:SFCC) publicly
traded securities during the period between August 4, 2003 and
December 15, 2005 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no
later than 60 days from January 3, 2006. If you wish to discuss this
action or have any questions concerning this notice or your rights or
interests, please contact plaintiff's counsel, William Lerach or
Darren Robbins of Lerach Coughlin at 800/449-4900 or 619/231-1058, or
via e-mail at wsl@lerachlaw.com. If you are a member of this class,
you can view a copy of the complaint as filed or join this class
action online at http://www.lerachlaw.com/cases/sfbc/. Any member of
the purported class may move the Court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and
remain an absent class member.
The complaint charges SFBC and certain of its officers and
directors with violations of the Securities Exchange Act of 1934. SFBC
is a drug development services company, which provides a range of
early and late stage clinical drug development services to branded
pharmaceutical, biotechnology, generic drug, and medical device
companies worldwide.
The complaint alleges that throughout the Class Period, defendants
made materially false and misleading statements regarding the
Company's business and prospects, including that it was achieving
record results from its worldwide recognition as a top drug
development services company. As a result of the defendants' false
statements, SFBC stock traded at inflated levels during the Class
Period, whereby the Company's top officers and directors sold more
than $29 million worth of their own shares together with assisting the
Company to sell more than $326 million worth of the Company shares in
three separate offerings.
On November 2, 2005, however, Bloomberg ran an article revealing
the true nature of the Company's business. The article revealed, among
other things, that, in order to insure that it had enough participants
for its drug testing contracts, the Company provided inadequate
disclosures in its consent forms regarding the dangers of particular
tests, and that the Company had manipulated participants vis-a-vis its
compensation payments to assure its participants would not drop out of
a drug testing trial or report uncomfortable or adverse reactions to a
drug. In a related article on November 16, 2005, Bloomberg reported
that the Company's top officers and directors had confronted certain
participants they believed to have been responsible for revealing
information to Bloomberg and advised them that they would call the
Immigration and Naturalization Service and have them deported unless
they signed sworn statements containing false statements contradicting
those in the Bloomberg article.
Then, on December 15, 2005, SFBC announced the results of its own
"internal investigation" of the allegations in the Bloomberg articles.
According to the complaint, the "internal investigation" was actually
a concerted effort to "white-wash" the complicity of SFBC's senior
officers and directors and failed to explain the defects in SFBC's
recruiting and administrative practices. From the day before Bloomberg
published its first article on November 2, 2005, through the end of
the Class Period on December 15, 2005, SFBC's stock price fell from
$41.49 to $15.78, a 61% drop.
Plaintiff seeks to recover damages on behalf of all purchasers of
SFBC publicly traded securities during the Class Period (the "Class").
The plaintiff is represented by Lerach Coughlin, which has expertise
in prosecuting investor class actions and extensive experience in
actions involving financial fraud.
Lerach Coughlin, a 160-lawyer firm with offices in San Diego, San
Francisco, Los Angeles, New York, Boca Raton, Washington, D.C.,
Houston, Philadelphia and Seattle, is active in major litigations
pending in federal and state courts throughout the United States and
has taken a leading role in many important actions on behalf of
defrauded investors, consumers, and companies, as well as victims of
human rights violations. Lerach Coughlin lawyers have been responsible
for more than $20 billion in aggregate recoveries. The Lerach Coughlin
Web site (http://www.lerachlaw.com) has more information about the
firm.