May 25, 2004- LAWFUEL – Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Northern District of Illinois on behalf of all
purchasers of the common stock of Bally Total Fitness Holding Corporation
(NYSE: BFT) (“Bally” or the “Company”) from August 3, 1999 through April 28,
2004, inclusive (the “Class Period”).
If you wish to discuss this action or have any questions concerning this
notice or your rights or interests with respect to these matters, please
contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman,
Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
info@sbclasslaw.com.
The complaint charges Bally, Paul A. Tobak, Lee S. Hillman, and John W.
Dwyer violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934
by issuing a series of materially false and misleading statements to the
public which described the Company’s increasing financial performance.
As alleged in the complaint, these statements were materially false and
misleading because they failed to disclose and/or misrepresented the following
adverse facts, among others: (i) that the Company had violated Generally
Accepted Accounting Principles (“GAAP”) and its own internal policies by
prematurely recognizing revenue on certain non-obligatory prepaid membership
dues; (ii) that the Company lacked adequate internal controls and was
therefore unable to ascertain the true financial condition of the Company; and
(iii) that, as a result, the value of the Company’s reported revenues during
the Class Period was materially overstated.
On April 28, 2004, the Company issued a press release announcing that its
Chief Financial Officer and Director, John W. Dwyer, had resigned and that the
Division of Enforcement of the Securities & Exchange Commission had commenced
an investigation in connection with the Company’s announced restatement
regarding the timing of recognition of certain prepaid dues. The Company also
stated that it had modified its existing internal controls structure, which it
believes is now effective. In response to these disclosures, shares of the
Company’s stock fell approximately 17%, to close at $4.50 per share, on
extremely heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is
represented by the law firm of Schiffrin & Barroway, which prosecutes class
actions in both state and federal courts throughout the country. Schiffrin &
Barroway is a driving force behind corporate governance reform, and has
recovered in excess of a billion dollars on behalf of institutional and high
net worth individual investors. For more information about Schiffrin &
Barroway, or to sign up to participate in this action online, please visit
http://www.sbclasslaw.com.
If you are a member of the class described above, you may, not later than
June 26, 2004 move the Court to serve as lead plaintiff of the class, if you
so choose. A lead plaintiff is a representative party that acts on behalf of
other class members in directing the litigation. In order to be appointed
lead plaintiff, the Court must determine that the class member’s claim is
typical of the claims of other class members, and that the class member will
adequately represent the class. Under certain circumstances, one or more
class members may together serve as “lead plaintiff.” Your ability to share
in any recovery is not, however, affected by the decision whether or not to
serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other
counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin & Barroway, LLP
Marc A. Topaz, Esq.
Stuart L. Berman, Esq.
Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004
1-888-299-7706 (toll-free) or 1-610-667-7706
Or by e-mail at info@sbclasslaw.com
