NOTICE OF SECURITIES CLASS ACTION AGAINST IMMUCOR, INC. - BLUDE
New York, NY (PrimeZone) September 9, 2005 - MURRAY, FRANK & SAILER LLP has filed a class action lawsuit in the United States District Court for the Northern District of Georgia on behalf of shareholders who purchased or otherwise acquired the securities of Immucor, Inc. (“Immucor” or the “Company”) (NasdaqNM: BLUD; BLUDE) between January 7, 2005 and August 29, 2005, inclusive (the “Class Period”).
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The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"), and Rule 10b-5 promulgated thereunder. During the Class Period, the complaint claims that Defendants misrepresented that Immucor's financial statements and disclosures fairly and accurately reflected the Company's results of operations as required by Generally Accepted Accounting Principles ("GAAP") and the Exchange Act. The Complaint also charges that Defendants' Sarbanes-Oxley certifications during the Class Period were also false and misleading, as the Company, knowingly or with severe recklessness, lacked adequate internal controls and failed to keep proper books and records in violation of their well publicized Code of Corporate Conduct.
The nature of Defendants' fraud began to come to light on August 26, 2005 when the Company was forced to announce that the Securities and Exchange Commission (the "SEC") had launched a formal investigation into payments made by its Italian unit and its president, Defendant De Chirico, in October 2003 to a physician connected with a hospital with which the Company was doing business. After the market closed on August 29, 2005, the Company revealed further that its Chief Financial Officer had resigned, that it would be revising its previously issued results for at least two quarters in order to account for a previously unrecorded accrued bonus, and that its Form 10-K for fiscal year 2005 would be further delayed due to additional accounting and auditing procedures the Company claimed was necessary to properly reflect the accrued bonus and to render the internal controls report required by Section 404 of Sarbanes Oxley.
In response to this news, the price of BLUD common stock dropped from a closing price of $28.61 on August 25, 2005 before the market learned of the SEC's formal investigation to close at $24.00 per share on August 30, 2005 . A staggering 6 million shares of BLUD common stock were traded on August 30, 2005 alone. This volume is nearly ten times the average daily volume.
During the first six months of 2005, Immucor insiders sold approximately 186,000 shares for proceeds of about $4,970,000. During this time, Defendants led the market to believe that the internal control issue involving the Italian subsidiary was "an isolated event" that was not expected to lead to more than a $350,000 fine and increased investigation expenses that had already been factored into the Company's bottom line. In fact, however, the opposite was true. Immucor's internal control problems, as the market later learned, were not confined to its Italian subsidiary and did not center solely around this alleged "isolated event."
If you purchased or otherwise acquired Immucor securities on any exchange between January 7, 2005 and August 29, 2005 , and sustained damages, you may move the Court to serve as lead plaintiff, no later 60 days from August 31, 2005 , a period ending on October 31, 2005 . Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at www.murrayfrank.com. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Eric J. Belfi, Christopher S. Hinton or Bradley P. Dyer of MURRAY, FRANK & SAILER LLP.
MURRAY, FRANK & SAILER LLP
Eric J. Belfi
Christopher S. Hinton
Bradley P. Dyer
(800) 497-8076 or (212) 682-1818
Fax: (212) 682-1892
Email: [email protected]