NEW YORK, Jan. 29 /PRNewswire-USNewswire/ -- Abbey Spanier Rodd & Abrams, LLP announces that it has commenced a Class Action lawsuit in the United States District Court for the District of Massachusetts on behalf of a class (the "Class") of all persons who purchased or acquired securities of American Dental Partners, Inc. ("ADPI" or the "Company") (Nasdaq: ADPI) between August 10, 2005 and December 13, 2007 inclusive (the "Class Period").
For further information, please contact Nancy Kaboolian, Esq. toll-free at 1-800-889-3701, or by e-mail to firstname.lastname@example.org.
ADPI is a leading provider of business services to multidisciplinary dental group practices in selected markets throughout the United States. Park Dental Group ("PDG") located in Minneapolis-St. Paul area, was one of the dental groups who had a long-term contract agreement with ADPI, and provided ADPI with significant revenue. Indeed, PDG accounted for 29 percent of ADPI's consolidated net revenue in 2006.
The business relationship between ADPI and PDG worked well for a number of years, but disputes arose in 2004. In February 2006, PDG sued ADPI and its subsidiary. On December 12, 2007, in connection with the lawsuit a jury found ADPI and/or its subsidiary liable for breach of contract, breach of implied covenants of good faith and fair dealing, breach of fiduciary duty, and tortious interference with contract and prospective advantage. The jury awarded PDG $88 million to compensate it for the injuries caused it by ADPI and its subsidiary and punitive damages of $42 million.
After the announcement of the jury verdict, ADPI's stock plummeted from $19.70 a share on December 11, 2007 to $14.34 on December 12, 2007, to $4.62 on December 13, 2007 after the announcement of the punitive damage award.
The complaint charges ADPI and certain of its officers and directors with violations of the federal securities laws by issuing a series of material misrepresentations to the market during the Class Period thereby artificially inflating the price of ADPI shares. More specifically, the complaint alleges that ADPI financial statements throughout the Class Period were materially false and misleading because defendants knew that a substantial amount of ADPI's revenue and earnings were obtained by conduct, which was wrongful and tortuous as, found by a jury on December 12, 2007.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired ADPI securities during the Class Period. If you purchased or otherwise acquired ADPI securities during the Class Period, and either lost money on the transaction or still hold the shares, you may wish to join in the action to serve as lead plaintiff. You do not have to have sold your securities to serve in this role. All motions for lead plaintiff must be made no later than March 31, 2008.
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 the 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 plaintiffs."
The attorneys at Abbey Spanier have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of billions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact:
Nancy Kaboolian, Esq. or
Abbey Spanier Rodd & Abrams, LLP
212 East 39th Street
New York, New York 10016
1-800-889-3701 (Toll Free)
|SOURCE Abbey Spanier Rodd & Abrams, LLP|
Copyright©2008 PR Newswire.
All rights reserved