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 Central
District of California on behalf of all persons who purchased the publicly
traded securities of Biolase Technology, Inc. (Nasdaq: BLTI) (“Biolase”)
between October 29, 2003 and July 16, 2004, inclusive (the “Class Period”).
Also included are all those who acquired Biolase’s shares through its
acquisition of PAC Live and in the secondary offering on or around February
The Complaint alleges that Biolase, a medical technology company that
designs, manufacturers and markets proprietary dental laser systems, and
certain of its officers and directors recognized revenue in advance of earning
it and failed to record adequate reserves for returns, causing Biolase’s
financial results to be inflated. As a result of this inflation, the Company
as it was able to complete a secondary stock offering of 2.8 million shares in
February 2004 at $18.80 per share.
On July 16, 2004, Biolase reported preliminary results for the second
quarter of 2004. On this news, the Company’s stock declined to $8.78. The
Company’s CFO resigned within two weeks. According to the complaint,
defendants knew that Biolase was not performing nearly as well as represented.
defendants concealed from the investing public that: (i) Waterlase was not
gaining market share and demand for the product was not increasing at th rates
represented by defendants; (ii) Biolase had introduced a lower priced entry
level laser which was cannibalizing sales such that Biolase’s reported
earnings were false and misleading; (iii) defendants were concealing this
decreasing demand by granting extended payment terms and price breaks; and
(iv) Biolase would not achieve the earnings growth forecasted.
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
[email protected] 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.
e-mail: [email protected]