Investor Update: The Class Period Has Been Expanded in the Case Against OCA, Inc.
NEW YORK, NY -- (MARKET WIRE) -- August 3, 2005 -- Abraham Fruchter & Twersky LLP announces that it has commenced a class action lawsuit in the United States District Court for the Eastern District of Louisiana on behalf of purchasers of OCA, Inc. ("OCA" or "the Company") (NYSE: OCA) common stock during an expanded class period, which now begins on November 12, 2003, and ends June 7, 2005 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than August 8, 2005. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Jack G. Fruchter of Abraham Fruchter & Twersky LLP at 800/440-8986 or 212/279-5050 or via e-mail at jfruchter@aftlaw.com. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. You do not need to seek appointment as a lead plaintiff in order to share in any recovery.
The complaint charges OCA and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Company provides business services to orthodontic and pediatric dental practices in the United States. The company provides affiliated practices with a range of operational, purchasing, financial, marketing, administrative, and other business services, as well as capital and proprietary information systems.
The Complaint alleges that, throughout the Class Period, defendants issued numerous positive statements and filed quarterly reports with the Securities and Exchange Commission, which described the Company's financial performance. The expanded Class Period now begins on November 12, 2003, the day OCA issued a press release announcing its financial results for the third quarter and nine months ended September 30, 2003.
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: (a) that defendants had engaged in improper accounting practices. OCA has now admitted that its prior financial reports are materially false and misleading as it announced that it is going to restate its results for the first three quarters of 2004 and potentially prior periods; (b) that certain journal entries in the Company's general ledger were improperly recorded; (c) that certain data provided to the Company's independent accounting firm had been improperly changed; (d) that the Company lacked adequate internal controls and was therefore unable to ascertain its true financial condition; and (e) that as a result of the foregoing, the values of the Company's patient receivables and patient revenue were materially overstated at all relevant times.
On June 7, 2005, the Company shocked the market when it issued a press release announcing that it was further delaying the filing of its annual report, that it intended to restate its quarterly financial statements for 2004 and that it had placed the Company's Chief Operating Officer, Bartholomew E. Palmisano Jr., on administrative leave. Specifically, the Company admitted that, among other things, it had materially overstated its patient receivables and patient revenue for the first three quarters of 2004. Following this announcement, shares of the Company's stock fell $1.53 per share, or almost 38%, to close at $2.50 per share, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers of OCA common stock during the Class Period (the "Class"). The plaintiff is represented by Abraham Fruchter & Twersky LLP, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.