HARTFORD, Conn., May 28, 2004 – 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 Northern
District of Illinois on behalf of all persons who purchased the publicly
traded securities of Bally Total Fitness Holding Corporation (NYSE: BFT)
(“Bally”) between August 3, 1999 and April 28, 2004, inclusive (the “Class
Period”). Also included are all those who acquired Bally’s shares through its
acquisitions of Crunch Fitness and 3 Club Fitness Group.
The Complaint alleges that Bally, a commercial operator of fitness
centers, and certain of its officers and directors issued materially false
statements concerning Bally’s financial condition. Specifically, defendants
statements were false and misleading because they failed to disclose that
Bally had improperly recognized revenue relating to non-obligatory, prepaid
membership dues in contravention of generally accepted accounting principles
and the Company’s revenue recognition policy.
On April 28, 2004, the Company announced that its Chief Financial Officer
and Director, John W. Dwyer, had resigned and that the Division of Enforcement
of the SEC had commenced an investigation in connection with Bally’s announced
restatement regarding the timing of recognition of certain prepaid dues. Bally
also stated that it had modified its existing internal controls structure,
which it believes is now effective. On this news, shares of Bally fell
approximately 17%, to close at $4.50 per share.
If you are a member of the class, you may, no later than July 26, 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.