PHILADELPHIA, Sept. 2 – LAWFUEL – The Law News Network — Barrack, Rodos & Bacine today issued the following:
New disclosures by World Health Alternatives, Inc.
(OTC Bulletin Board: WHAIE) (“World Health Alternatives” or the “Company”)
provide further support for the claims asserted in the class action commenced
by Barrack, Rodos & Bacine in the United States District Court for the Western
District of Pennsylvania on behalf of purchasers of the publicly traded
securities of World Health Alternatives. In a Form 8-K filed with the SEC on
August 31, 2005, the Company revealed that its former auditors, Daszkal Bolton
LLP (“Daszkal Bolton”) had previously informed the Company’s Audit Committee
of difficulties it had encountered in performing the audit of the Company’s
financial statements for the year ended December 31, 2004 with respect to the
timely receipt of finalized documents such as asset acquisition documents,
board of directors resolutions, and confirmations from management. The Form
8-K said that, despite encountering these difficulties, Daszkal Bolton’s
reports on the Company’s financial statements for the two most recent fiscal
years did not contain an adverse opinion or a disclaimer of opinion, nor were
they modified as to uncertainty, audit scope or accounting principles.
Barrack, Rodos & Bacine, which filed the first class action lawsuit
against World Health Alternatives, Daszkal Bolton, and certain of the
Company’s present and former officers arising from material misstatements in
the Company’s publicly filed financial statements, further announces that the
Class Period has been expanded to June 23, 2003 through August 18, 2005. The
complaint alleges that the Company’s publicly filed financial statements
during the Class Period were materially false and misleading in that, among
other things, the Company underpaid more than $4 million in taxes during the
Class Period, and net income was consequently overstated by a comparable
amount; that the Company was in breach of its lending agreements as a result
of having misrepresented its financial condition to its lenders, resulting in
the Company having fraudulently obtained more than $6.5 million from its
lenders; and that the Company misstated the amount of debenture and warrants
associated with the Company’s preferred stock. The complaint seeks to recover
damages on behalf of all persons who purchased World Health Alternatives
securities during the Class Period.
Barrack, Rodos & Bacine has extensive experience in prosecuting investor
class actions involving financial fraud. Barrack, Rodos & Bacine has
prosecuted securities, antitrust and consumer class actions for more than 25
years. The firm has offices in Philadelphia, San Diego, New York and New
Jersey and has been designated lead counsel by federal and state courts across
the country in large, complex cases. For more information about Barrack,
Rodos & Bacine, please visit their website at http://www.barrack.com.
If you are a member of the Class described above, you may, no later than
October 24, 2005, move the Court to serve as lead plaintiff of the Class, if
you so choose. In order to serve as lead plaintiff, however, you must meet
certain legal requirements. If you wish to discuss this action or have any
questions concerning this case or your rights or interests, please contact
Leslie Bornstein Molder, Esquire, Barrack, Rodos & Bacine, 3300 Two Commerce
Square, 2001 Market Street, Philadelphia, PA 19103, lmolder@barrack.com,
215-963-0600, fax number 215-963-0838.
CONTACT: Leslie Bornstein Molder, Esquire, of Barrack, Rodos & Bacine,
+1-215-963-0600, or fax +1-215-963-0838.
