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SFCC Sfbc (MM)

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Share Name Share Symbol Market Type
Sfbc (MM) NASDAQ:SFCC NASDAQ Common Stock
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Lerach Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against SFBC International, Inc.

18/01/2006 10:09pm

Business Wire


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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.

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