NEW YORK, April 18, 2007 (PRIME NEWSWIRE) — Roy Jacobs & Associates announces that it has 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) from January 31, 2007 through April 4, 2007 (the “Class Period”). Defendants include Cutera and certain of its top officers and directors.
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The complaint alleges 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.
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.
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 April 4, 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.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca