Chimicles & Tikellis LLP Commences Securities Class Action Against PainCare Holdings, Inc. (Amex: PRZ)

HAVERFORD, Pa., March 29  /PRNewswire/ -- Chimicles & Tikellis LLP has commenced a securities class action against PainCare Holdings, Inc. ("PainCare" or the "Company"), Randy Lubinsky, its Chief Executive Officer, and Mark Szporka, its Chief Financial Officer in the United States District Court for the Middle District of Florida.  The action, Zausmer v. PainCare Holdings, Inc., No. 6:06-cv-00396-GKS-DAB, was brought on behalf of all persons who purchased or otherwise acquired for value common stock of PainCare between August 27, 2002 and March 15, 2006 (the "Class"). Excluded from the Class are defendants, members of their families, and the directors and officers of PainCare and its subsidiaries. Plaintiff Zausmer is also represented by the law firms of Cooper, Ridge & Lantinberg, P.A. and Miller Shea, P.C.

PainCare, which has grown rapidly through acquisitions, announced publicly on March 15, 2006 that it would be restating its financial statements from 2000 through the third quarter of 2005, based upon discussions with the staff of the Securities and Exchange Commission. According to the Company's March 15 announcement, PainCare estimates that the total restatement for the years 2000 to 2004 would be a net negative $23.5 million. Following this news, shares of PainCare dropped by 12.5% on heavy trading to close at $2.50 per share on March 16, 2006, a drop of over 52% in value from the stock's Class period high of $5.25.

The complaint alleges that PainCare, along with defendants Lubinsky and Szporka, violated sections 10(b) and 20(a) of the Exchange Act, and Rule 10b- 5, by issuing a series of public disclosures that falsely portrayed the Company's financial conditions and results of operations during the Class Period. Specifically, the complaint alleges that PainCare's financial statements were not prepared in compliance with generally accepted accounting principles and that the Company improperly accounted for its acquisitions, as well as other non-cash items. The complaint alleges that the price for PainCare common stock was artificially inflated during the period from August 27, 2002 to March 15, 2006 because of the false and misleading statements made by the defendants, and seeks to recover damages for the members of the Class from the defendants. A copy of the complaint filed in this action is available from the Court; and can be viewed at http://www.chimicles.com/.

If you are a member of the Class, then you may move the Court to serve as lead plaintiff of the Class on or before May 22, 2006. Several notices have been published in connection with related actions against the same defendants. Those notices have advised the investing public that May 19, 2006 is the correct date for filing lead plaintiff motions.  Those notices relied on a defective notice which failed to advise members of the Class that they had the right to move to serve as lead plaintiff within 60 days, as required by law. Consequently, we believe that the correct deadline for the filing of a motion for appointment as lead plaintiff is May 22, 2006, based upon the date when the first notice that contained the required information was issued.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Your ability to share in any recovery will not be affected by your decision whether to move for appointment as lead plaintiff. If you decide that you wish to move for appointment as lead plaintiff, you may retain Chimicles & Tikellis LLP, or other counsel of your choice to serve as your attorneys.

The Court will determine who will be the lead plaintiff, and that plaintiff will act on behalf of the members of the Class in directing the litigation.  In order to be appointed lead plaintiff, a class member must file a motion seeking appointment as lead plaintiff. The Court must then determine that the class member's claim is typical of the claims of other class members, and that the class member is the most adequate of those who have moved to represent the class as lead plaintiff. Under certain circumstances, one or more class members may together serve as "lead plaintiff."

If you would like to consider serving as a lead plaintiff or have any questions about this class action, you may contact:

  James R. Malone, Jr.
  ()
  Joseph G. Sauder
  ()
  Chimicles & Tikellis LLP
  One Haverford Center
  Haverford, PA 19041
  1-888-805-7848.



Chimicles & Tikellis LLP is a leading class action law firm with a national practice and with significant experience representing investors in class actions under the federal securities laws.  Please visit our web site if you would like more information about our firm.  http://www.chimicles.com/. 

DATASOURCE: Chimicles & Tikellis LLP



CONTACT:  James R. Malone, Jr., , or Joseph G.

Sauder, , of Chimicles & Tikellis LLP,

[phone]



Web site:  http://www.chimicles.com/

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