NEW YORK, June 11, 2008 (LAWFUEL) — Roy Jacobs & Associates
announces that it has filed a class action lawsuit in the United States
District Court, Western District of Wisconsin, on behalf of purchasers
of the common stock of TomoTherapy, Inc. (“TOMO” or the “Company”)
(Nasdaq:TOMO) from October 10, 2007 through April 17, 2008 (the “Class
Period”), alleging claims for securities fraud.
For further information, please contact Roy L. Jacobs, Esq. toll-free
at 1-888-884-4490 or by e-mail to rjacobs@jacobsclasslaw.com. You may
also visit the firm’s website at www.jacobsclasslaw.com.
On October 10, 2007 the Company’s secondary share offering of 8.5
million shares (the “Offering”) became effective at $22.25 per share.
None of the proceeds of the Offering were received by the Company.
Rather, the Company’s Chairman, its Chief Executive Officer, its
President and its Chief Financial Officer sold a very significant
number of shares and together received tens of millions of dollars in
proceeds.
The complaint charges TOMO and the officers referenced above with
violations of the Federal Securities Laws. It is alleged, inter alia
that defendants concealed in the Offering and thereafter that a larger
percentage of TOMO’s revenue backlog was from for-profit entities which
had ordered multi-unit Hi-Art X-ray medical treatment systems and could
be anticipated to take delivery of the units sequentially throughout
2008 and 2009. Thus, contrary to defendants’ representations that order
backlog would generally be recognized as revenue within 12 months of
order placement, this was not the case with respect to the multi-unit
orders, which represented an increasingly large percentage of total
backlog.
On April 17, 2008, defendants issued a press release announcing that
TOMO would suffer a net loss for the first quarter of 2008, and that
defendants had revised materially downward their revenue and earnings
outlook for fiscal 2008. Defendants finally admitted that a greater
percentage of TOMO’s backlogged orders were for multi-unit Hi-Art
systems ordered by for profit entities who would be expected to take
delivery of the units sequentially. Thus, these units would remain in
backlog longer than single-unit orders and delivery would be pushed
further back in 2008 and even into 2009. The representation that
backlog could ordinarily be converted into recognized revenue within 12
months from order placement was finally revealed as false, incomplete,
and misleading.
We continue to investigate potential wrongdoing concerning the
Offering. If you bought shares in the Offering which was effective on
October 10, 2007 and closed on or about October 16, 2007, and suffered
a loss, you may recover your losses from defendants without having to
prove fraud.
If you purchased TOMO shares during the Class Period which is from
October 10, 2007 through April 17, 2008, and are interested in
discussing your rights free of charge, please contact Roy L. Jacobs.
You may qualify to serve as Lead Plaintiff on behalf of the Class. All
motions for appointment as Lead Plaintiff must be filed by July 29,
2008.
