HARTFORD, Conn., Aug. 14, 2004 Legal news, law news, law firm news & research at LAWFUEL The law firm of Schatz & Nobel,
P.C., which has significant experience representing investors in prosecuting
claims of securities fraud, announces that a lawsuit seeking class action
status has been filed in the United States District Court for the Southern
District of Florida on behalf of all persons who purchased the publicly traded
securities of Cross Country Healthcare (Nasdaq: CCRN) (“Cross Country”)
between October 25, 2001 and August 6, 2002, inclusive (the “Class Period”).
Also included are all those who acquired Cross Country’s shares through its
acquisition of NovaPro.
The Complaint alleges that Cross Country, a provider of travel nurse
staffing services and per diem nurse staffing services, and certain of its
officers and directors issued materially false and misleading statements.
Specifically, the complaint alleges that defendants knew but concealed from
the investing public that: (i) the demand for the Company’s short-term,
temporary nursing contracts, Cross Country’s core business, was not as great
as represented by defendants, and (ii) the Company was experiencing problems
with staffing orders for temporary nurses being received and then abruptly
cancelled by hospitals, a problem which, if disclosed to the market, would
have a materially negative impact on the Company’s stock price.
On the news of the decline in demand and drop in the number of its full-
time nurses, Cross Country shares fell to a then all-time low of $13.06 in
intra-day trading, a decline of more than 50% from the previous day’s closing
price of $26.19. Cross Country’s share price closed below the IPO price for
the first time in its history, and it did so definitively at $14.34, or 15%
below the IPO price and 45% below the previous day’s close.
If you are a member of the class, you may, no later than October 5, 2004
request that the Court appoint you as lead plaintiff of the class. A lead
plaintiff is a class member that acts on behalf of other class members in
directing the litigation. Although your ability to share in any recovery is
not affected by the decision whether or not to seek appointment as a lead
plaintiff, lead plaintiffs make important decisions which could affect the
overall recovery for class members, including decisions concerning settlement.
The securities laws require the Court to consider the class member(s) with the
largest financial interest as presumptively the most adequate lead
For more information about the case, its claims, and your rights, please
contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at
firstname.lastname@example.org. To view a copy of the lawsuit initiating the class action,
or for more information about class action cases and Schatz & Nobel, please
visit our website: http://www.snlaw.net.