NEW YORK, July 10, 2008 (LAWFUEL) — Roy Jacobs & Associates
announces that it has amended its previously filed class action lawsuit
in the United States District Court, Western District of Wisconsin, to
add an insider trading claim on behalf of purchasers of the common
stock of TomoTherapy, Inc. (“TOMO” or the “Company”) (Nasdaq:TOMO) from
October 10, 2007 through October 22, 2007.
For further information, please contact Roy L. Jacobs, Esq. toll-free
at 1-888-884-4490 or by e-mail to rjacobs@jacobsclasslaw.com. You may
also visit the firm’s website at www.jacobsclasslaw.com.
On October 10, 2007, the Company’s secondary share offering of 8.5
million shares (the “Offering”) became effective at $22.25 per share.
None of the proceeds of the Offering were received by the Company.
Rather, the Company’s Chairman, its Chief Executive Officer, its
President and its Chief Financial Officer sold a very significant
number of shares and together received tens of millions of dollars in
proceeds.
The complaint charges TOMO and the officers referenced above with
violations of the federal securities laws. It is alleged, inter alia
that defendants concealed in the Offering and thereafter that a larger
percentage of TOMO’s revenue backlog was from for-profit entities which
had ordered multi-unit Hi-Art X-ray medical treatment systems and could
be anticipated to take delivery of the units sequentially throughout
2008 and 2009. Thus, contrary to defendants’ representations that order
backlog would generally be recognized as revenue within 12 months of
order placement, this was not the case with respect to the multi-unit
orders, which represented an increasingly large percentage of total
backlog.
On April 17, 2008, defendants issued a press release announcing that
TOMO would suffer a net loss for the first quarter of 2008, and that
defendants had revised materially downward their revenue and earnings
outlook for fiscal 2008. Defendants finally admitted that that a
greater percentage of TOMO’s backlogged orders were for multi-unit
Hi-Art systems ordered by for profit entities who would be expected to
take delivery of the units sequentially. Thus, these units would remain
in backlog longer than single-unit orders and delivery would be pushed
further back in 2008 and even into 2009. The representation that
backlog could ordinarily be converted into recognized revenue within 12
months from order placement was finally revealed as false, incomplete,
and misleading.
If you bought TOMO shares in the period from October 10, 2007 through
October 22, 2007 (whether on the open market or in the Offering) you
may have an insider trading claim under the federal securities laws.
Also, if you bought TOMO shares during the period from October 10, 2007
through April 17, 2008, you may also have a claim under the federal
securities laws.
If you are interested in discussing your rights free of charge, please
contact Roy L. Jacobs. You may qualify to serve as Lead Plaintiff on
behalf of the Class. All motions for appointment as Lead Plaintiff must
be filed by July 29, 2008.
You may also sign up at our website at www.jacobsclasslaw.com.
