Case Page

 

Case Status:    DISMISSED    
On or around 10/25/2002 (Date of order of final judgment)

Filing Date: April 09, 2001

According to a Press Release dated October 29, 2002, the U.S. District Court for the
Eastern District of Louisiana has ordered the dismissal of the class action
lawsuit alleging securities fraud filed against Orthodontic Centers of America, Inc. and certain members of its senior management. In its ruling, the Court found that the plaintiffs had failed to allege sufficient facts to support their claim that the Company or its officers and directors violated federal securities laws. The Court also ruled that the plaintiffs will not be permitted to amend the lawsuit and stated that "the Court dismisses plaintiffs' Amended Complaint with prejudice because 'another pleading attempt would be an inefficient use of the parties' and the Court's resources, would cause unnecessary and undue delay, and would be futile."'

The original class action lawsuit was commenced charging that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Besides issuing a series of false and misleading press releases concerning OCA's financial condition, the complaint alleges that the Company improperly recognized revenues in violation of Generally Accepted Accounting Principles ("GAAP"). As a result, the price of the Company's common stock was artificially inflated throughout the Class Period, reaching as high as $35.313 per share, allowing defendants to collectively sell or propose to sell millions of dollars worth of shares in personally held OCA Stock. However, on March 16, 2001 the true state of the Company's finances were revealed when the Company disclosed that as a result of an SEC inquiry, OCA must change its revenue recognition policy to conform with GAAP. In response, the stock price of OCA plummeted approximately 20% in inter-day trading on heavy trading volume.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Healthcare Facilities
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: OCA
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: E.D. Louisiana
DOCKET #: 01-CV-00949
JUDGE: Hon. G. T. Porteous Jr.
DATE FILED: 04/09/2001
CLASS PERIOD START: 04/27/2000
CLASS PERIOD END: 03/15/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Faruqi & Faruqi LLP (New York) (former)
    320 East 39th Street, Faruqi & Faruqi LLP (New York) (former), NY 10016
    212.983.9330 212.983.9331 · Nfaruqi@faruqilaw.com
  2. Wechsler Harwood LLP
    488 Madison Avenue 8th Floor, Wechsler Harwood LLP, NY 10022
    212.935.7400 · info@whhf.com
No Document Title Filing Date
COURT: E.D. Louisiana
DOCKET #: 01-CV-00949
JUDGE: Hon. G. T. Porteous Jr.
DATE FILED: 02/25/2002
CLASS PERIOD START: 04/27/2000
CLASS PERIOD END: 02/07/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Faruqi & Faruqi LLP (New York) (former)
    320 East 39th Street, Faruqi & Faruqi LLP (New York) (former), NY 10016
    212.983.9330 212.983.9331 · Nfaruqi@faruqilaw.com
  2. Wechsler Harwood LLP
    488 Madison Avenue 8th Floor, Wechsler Harwood LLP, NY 10022
    212.935.7400 · info@whhf.com
  3. Wechsler, Harwood, Halebian & Feffer, LLP
    488 Madison Avenue, Wechsler, Harwood, Halebian & Feffer, LLP, NY
    212.935.7400 10022 ·
No Document Title Filing Date