Lawfuel – The Law Newswire – NEW YORK, May 8, 2007 — On April 18, 2007, Roy Jacobs & Associates announced that it had commenced a class action lawsuit in the United States District Court for the Northern District of California on behalf of all purchasers of the common stock and other securities of Cutera, Inc. (“Cutera” or the “Company”) (Nasdaq:CUTR). Defendants included Cutera and certain of its top officers and directors.
Plaintiff will be amending his Complaint to assert a new, longer Class
Period: from January 31, 2007 through May 7, 2007 (the “Class Period”),
and incorporate new allegations.
On May 7, 2007, after the close of trading, Cutera announced “the
unsuccessful implementation of our junior sales program, unusually high
sales employee turnover, and disappointing results from PSS and other
national accounts,” and it forecast fiscal second quarter and 2007
sales below expectations. None of these adverse developments were
adequately disclosed on April 4, 2007 when, in announcing disappointing
results, CEO Connors stated: “This quarter’s shortfall was due
primarily to lower than expected productivity levels of our recent
sales expansion. We are implementing specific initiatives to address
this matter and remain confident in our ability to increase our revenue
growth.” On May 8, 2007, Cutera shares opened at $23.05, down $6.19, on
heavy volume.
You may join this action by visiting our website at
www.jacobsclasslaw.com, or, for further information you may call toll
free, 1-888-884-4490, or contact counsel by e-mail at:
jacobs@jacobsclasslaw.com.
The complaint previously filed alleged that Cutera and certain officers
and directors violated the federal securities laws by making false and
misleading statements and omissions assuring the investing public that
increased sales efforts and other corporate developments would lead to
extraordinary growth in the first quarter of 2007, and for the entire
year. Specifically, Cutera asserted on January 31, 2007 that these
positive factors would lead to 25% revenue growth for the first quarter
of 2007 and for the full year, 33% growth in net income for the first
quarter of 2007, and 25% growth in net income for the full year. This
announcement was followed shortly thereafter by unusually large stock
sales by Cutera’s CEO, defendant Kevin P. Connors and Cutera’s CFO,
defendant Robert J. Santilli. The Complaint alleges that CEO Connors
has a history of making stock sales at high prices just prior to the
release of adverse corporate news.
Then on April 5, 2007 defendants shocked the market by announcing that
revenues and earnings for the first quarter of 2007 would not increase
25%, as stated just weeks before, but rather would materially decrease.
Defendants offered no cogent explanation for this reversal.. On this
news, Cutera shares dropped $11.72 per share on extraordinary trading
volume of 7.2 million shares. As noted, even then, Cutera reassured
investors, and concealed the collapse of its junior sales program and
an unusual number of sales staff defections. These facts were not
disclosed until May 7, 2007.
If you purchased Cutera stock during the Class Period, you may qualify
to serve as Lead Plaintiff on behalf of the Class, which consists of
all persons and entities who purchased Cutera stock and other
securities from January 31, 2007 through May 7, 2007. You are not
required to have sold your Cutera stock in order to claim damages, or
to serve in this role. All motions for appointment as Lead Plaintiff
must be filed with the Court by June 18, 2007.
If you wish to discuss this action or have any questions concerning
this notice or your rights or interests with respect to this matter,
please contact Roy L. Jacobs. Mr. Jacobs will personally speak with you
at no cost or obligation. You may also join this action by visiting our
website at www.jacobsclasslaw.com.
