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PainCare Holdings, Inc.
Summary: According to a press release dated June 30, 2008, a settlement has been proposed in a class action about the alleged inflation of the price of PainCare common stock during the Class Period. The settlement will provide a settlement fund of two million dollars ($2,000,000) for the benefit of investors who purchased PainCare common stock during the Class Period and it is authorized by the United States District Court for the Middle District of Florida, Orlando Division. The Court will hold a hearing to decide whether to approve the settlement before any money is paid out.
As summarized by the Company’s FORM 10-Q For the Quarterly Period Ended September 30, 2007, on March 21, 2006, a complaint was filed under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against the Company, as well as the Company’s chief executive officer and chief financial officer, before the United States District Court for the Middle District of Florida. … Ten additional complaints were filed shortly afterward before the same court which recite similar allegations. (Collectively, these cases will be referred to as the “Securities Litigation.”) Lead counsel was selected and a consolidated complaint was filed. On September 20, 2006, the Company filed a motion to dismiss the pending securities class action with the Federal District Court. Subsequently, the District Court referred the matter to a Federal Magistrate for a hearing, report and recommendation. On January 17, 2007, the Magistrate held a hearing and took the matter under submission. On March 26, 2007, the Magistrate issued a report which recommended that the District Court dismiss all outstanding claims with leave to amend. On April 25, 2007, the District Court signed an order adopting the Magistrate’s report and dismissed the Securities Litigation, with leave to amend. An amended consolidated class action complaint was filed on May 23, 2007. By motion filed June 7, 2007, the Company again moved to dismiss the action. The Magistrate held a hearing regarding the Company’s dismissal motion at the conclusion of the hearing, the matter was taken under submission by the Magistrate on August 15, 2007. As of the date hereof, the Magistrate Judge has yet to issue his report and recommendation on the Company’s motion.
Several purported shareholder class action lawsuits have been filed against PainCare Holdings, Inc. and certain of its executive officers alleging that defendants violated the federal securities laws by overstating and exaggerating the company's financial health. In particular, according to the complaint, PainCare went on a buying spree, growing its business by corporate acquisition, but accounting for such acquisitions in violation of Generally Accepted Accounting Principles ("GAAP"). Accordingly, the company overstated its earnings by failing to comply with GAAP in recording its noncash growth. On March 15, 2006, the last day of the class period, the company announced that it would have to restate its financial figures going back to 2000--to its founding--in order to adjust for the improper accounting of its corporate acquisitions.
The complaint further alleges that in the wake of the revelation of the defendants' wrongful conduct, the company's stock sunk to new lows, having recently traded at under $1.75 per share--down from its class period high of $5.25 per share. In just the first day of trading following the announced restatement, PainCare's stock dropped 12.6%, on extremely heavy volume, down over 50% from its class period high.
The lawsuit has been filed on behalf of all persons who purchased or otherwise acquired the publicly traded securities of PainCare Holdings, Inc. during the Class Period. Also included are all those who acquired PainCare in a secondary offering in October of 2004, or through the acquisitions of Dynamic, Denver Pain, PainCare, Inc., Amphora, REC, Inc., PHS Alpha, Center for Pain Management or Desert Pain.
INDUSTRY CLASSIFICATION:
SIC Code: 8090
Sector: Healthcare
Industry: Healthcare Facilities
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE |
| Roy Thomas Mould, et al. v. PainCare Holdings, Inc., et al. |
| COURT: M.D. Florida | DOCKET NUMBER: 06-CV-00362 |
| JUDGE NAME: Hon. John Antoon II |
| DATE FILED: 3/21/2006 | SOURCE: Notice of Filing | | CLASS PERIOD START: 8/27/2002 | CLASS PERIOD END: 3/15/2006 | | TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated) | | PLAINTIFF FIRMS NAMED IN COMPLAINT: |
Abbey Spanier Rodd Abrams & Paradis, LLP 212 East 39th Street, New York, NY, 10016
(voice) 212-889-3700, (fax) 212-684-519, info@abbeyspanier.com
Berman DeValerio Pease Tabacco Burt & Pucillo (FL) 515 North Flagler Drive - Suite 1701, West Palm Beach, FL, 33401
(voice) 561.835.9400, (fax) ,
Brodsky & Smith, LLC (Pennysylvania) 11 Bala Avenue, Suite 39, Bala Cynwyd, PA, 19004
(voice) 610.668.7987, (fax) 610.660.0450, esmith@Brodsky-Smith.com
Chimicles & Tikellis LLP 361 West Lancaster Avenue, Haverford, PA, 19041
(voice) 888.805.7848, (fax) 610.649.3633, mail@chimicles.com
Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC) 1100 New York Avenue, N.W., Suite 500, West Tower, Washington, DC, 20005
(voice) 202.408.4600, (fax) 202.408.4699, lawinfo@cmht.com
Cooper, Ridge & Lantinberg PA 200 West Forsyth Street. Suite 1200, Jacksonville, FL, 32202
(voice) , (fax) ,
Faruqi & Faruqi LLP 320 East 39th Street, New York, NY, 10016
(voice) 212.983.9330, (fax) 212.983.9331, Nfaruqi@faruqilaw.com
Federman & Sherwood 120 North Robinson, Suite 2720, Oklahoma City, OK, 73102
(voice) 405-235-1560, (fax) , wfederman@aol.com
Gardy & Notis, LLP 440 Sylvan Avenue, Englewood Cliffs, NJ, 07632
(voice) 201-567-7377, (fax) 201-567-7337, info@gardylaw.com
Klafter & Olsen LLP 1250 Connecticut Ave., N.W. Suite 200, Washington, DC, 20036
(voice) 202.261.3553, (fax) 202.261.3533, info@klafterolsen.com
Law Offices of Charles J. Piven, P.A. World Trade Center-Baltimore,401 East Pratt Suite 2525, Baltimore, MD, 21202
(voice) 410.332.0030, (fax) , pivenlaw@erols.com
Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville) 58 South Service Road, Suite 200, Melville, NY, 11747
(voice) 631.367.7100, (fax) 631.367.1173,
Lockridge, Grindal, Nauen P.L.L.P. Suite 301, 660 Pennsylvania Avenue Southeast, Washington, DC, 20003-4335
(voice) 202.544.9840, (fax) 202.544.9850,
Milberg Weiss Bershad & Schulman LLP (Boca Raton) The Plaza - 5355 Town Center Road, Suite 900, Boca Raton, FL, 33486
(voice) 561.361.5000, (fax) 561.367.8400, info@milbergweiss.com
Murray, Frank & Sailer LLP 275 Madison Ave 34th Flr, New York, NY, 10016
(voice) 212.682.1818, (fax) 212.682.1892, email@murrayfrank.com
Sarraf Gentile LLP 485 Seventh Avenue, Suite 1005, New York, NY, 10018
(voice) 212.868.3610, (fax) 212.918.7967,
Schatz & Nobel, P.C. 330 Main Street, Hartford, CT, 06106
(voice) 800.797.5499, (fax) 860.493.6290, sn06106@AOL.com
Schiffrin & Barroway LLP 3 Bala Plaza E, Bala Cynwyd, PA, 19004
(voice) 610.667.7706, (fax) 610.667.7056, info@sbclasslaw.com
Scott & Scott LLC P.O. Box 192, 108 Norwich Avenue, Colchester, CT, 06415
(voice) 860.537.5537, (fax) 860.537.4432, scottlaw@scott-scott.com
Shalov Stone & Bonner LLP (New York) 485 Seventh Avenue, Suite 1000, New York, NY, 10018
(voice) 212.239.4340, (fax) 212.239.4310, lawyer@lawssb.com
Smith & Smith LLP 3070 Bristol Pike, Suite 112, Bensalem, PA, 19020
(voice) 215.638.4847, (fax) 215.638.4867,
Wites & Kapetan, P.A. 1761 West Hillsboro Boulevard - Suite 403, Deerfield Beach, FL, 33442
(voice) , (fax) ,
_____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 22 | | | DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | | Class Action Complaint | | Type: Complaint | Date on the document: 3/21/2006 | | Order | | Type: Order of Consolidation | Date on the document: 7/27/2006 | | Order | | Type: Order | Date on the document: 7/28/2006 | REFERENCE COMPLAINT | | In Re: PainCare Holdings, Inc. Securities Litigation | | COURT: M.D. Florida | DOCKET NUMBER: 06-CV-00362 | | JUDGE NAME: Hon. John Antoon II | | DATE FILED: 5/23/2007 | SOURCE: Docket | | CLASS PERIOD START: 3/24/2003 | CLASS PERIOD END: 3/15/2006 | | TYPE OF COMPLAINT: Consolidated and/or Amended | | PLAINTIFF FIRMS NAMED IN COMPLAINT: |
Kaplan Fox & Kilsheimer, LLP (New York, NY) 805 Third Avenue, 22nd Floor, New York, NY, 10022
(voice) 212.687.1980, (fax) 212.687.7714, info@kaplanfox.com
Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY) One Pennsylvania Plaza, New York, NY, 10119-1065
(voice) 212.594.5300, (fax) ,
_____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1 | | | OTHER DOCUMENTS | | Complaint |
| Case Name and/or Number: Stephen Hofmayer, et al. v. PainCare Holdings, Inc., et al. |
| Type: Complaint | Date on the document: 03/21/2006 | | Class Action Complaint for Violations of the Federal Securities Laws - Jury Trial Demanded |
| Case Name and/or Number: Michael Chopyk, et al. v. PainCare Holdings, Inc., et al. |
| Type: Complaint | Date on the document: 03/23/2006 | | Class Action Complaint And Demand For Jury Trial
|
| Case Name and/or Number: Benjamin Atluri, et al. v. PainCare Holdings, Inc., et al. |
| Type: Complaint | Date on the document: 03/27/2006 | | Complaint |
| Case Name and/or Number: Mark J. Zausmer, et al. v. PainCare Holdings, Inc., et al. |
| Type: Complaint | Date on the document: 03/29/2006 | | Class Action Complaint for Violation of Federal Securities Laws - Demand for Jury Trial |
| Case Name and/or Number: Donald Marks, et al. v. PainCare Holdings, Inc., et al. |
| Type: Complaint | Date on the document: 04/10/2006 | | Class Action Complaint |
| Case Name and/or Number: Conrad L. Hoover, et al. v. PainCare Holdings, Inc., et al. |
| Type: Complaint | Date on the document: 04/12/2006 | | Class Action Complaint |
| Case Name and/or Number: Conrad Hoover, et al. v. PainCare Holdings, Inc., et al. |
| Type: Complaint | Date on the document: 04/14/2006 | | Complaint |
| Case Name and/or Number: Masarek, et al. v. PainCare Holdings, Inc., et al. |
| Type: Complaint | Date on the document: 04/27/2006 | | US District Court Civil Docket |
| Case Name and/or Number: Stephen Hofmayer, et al. v. PainCare Holdings, Inc., et al. |
| Type: Docket | Date on the document: 10/12/2006 | WARNING AND DISCLAIMER OF LIABILITY: The information included on this Web site, whether provided by personnel employed by Stanford Law School or by third parties, is provided for research and teaching purposes only. Neither Stanford University, Stanford Law School, nor any of their employees, agents, contractors, or affiliates warrant the accuracy or completeness of the information or analyses displayed herein, and we caution all readers that inclusion of any information on this site does not constitute an endorsement of the truthfulness or accuracy of that information. In particular, this Web site contains complaints and other documents filed in federal and state courts, which make allegations that may or may not be accurate. No reader should, on the basis of information contained in or referenced by this Web site, assume that any of these allegations are truthful. Go to Search page | Go to Case Index page | Back to Top
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