Case Page

 

Case Status:    DISMISSED    
On or around 06/04/2002 (Date of order of final judgment)

Filing Date: February 04, 2002

According to the Company's FORM 10-Q for the quarterly period ended June 30, 2002, on February 4, 2002, a securities class action lawsuit entitled Michael Keskinen v. Regeneration Technologies, Inc. et al., No. 1:02-CV9 MMP-WW was filed in the United States District Court, Northern District of Florida Gainesville Division, against the Company and certain of its current and former officers and directors. Since the Keskinen lawsuit was filed, a number of additional securities class action lawsuits were filed in the U.S. District Court for the Northern District of Florida based upon the same alleged facts. All of the class action suits that were served upon the Company have now been voluntarily dismissed by the plaintiffs without prejudice.

The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, by issuing materially false and misleading statements to the market. Specifically, throughout the Class Period, defendants made highly positive statements regarding the Company's financial results. RTI reported quarter after quarter of "record" financial results and strong revenue growth which caused the price of RTI securities to trade as high as $12.82 per share during the Class Period. These statements were allegedly false and misleading because the Company failed to take a charge to earnings to recognize worthless inventory.

The complaint further alleges that on or around February 2, 2002, RTI shocked the market by announcing that the Company was delaying its fourth quarter and year end results for fiscal year 2001 while "management completes its evaluation of certain inventory issues." The Company also announced that its Chief Financial Officer Richard Allen and Vice President of Marketing and Sales James Abraham are leaving the Company, effective immediately. The Company further announced that it is "evaluating whether these issues may affect RTI's previously reported financial results" and although "RTI's annual results have not been finalized, company officials expect to report a loss for both the quarter and the year." In response to the news the price of RTI stock plunged more than 50% from$10.15 on January 31, 2002 to $5.19 on February 1, 2002.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Biotechnology & Drugs
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: RTIX
Company Market: NASDAQ
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: N.D. Florida
DOCKET #: 02-CV-00009
JUDGE: Hon. Maurice M. Paul
DATE FILED: 02/04/2002
CLASS PERIOD START: 07/25/2001
CLASS PERIOD END: 01/31/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cauley Geller, Bowman Coates & Rudman, LLP (Boca Raton, FL)
    One Boca Place. 2255 Glades Road, Suite 421A, Cauley Geller, Bowman Coates & Rudman, LLP (Boca Raton, FL), FL 33431
    561.750.3000 561.750.3364 ·
  2. Levy & Levy

    ·
  3. Milberg Weiss Bershad Hynes & Lerach LLP (Boca Raton)
    The Plaza, Suite 900, 5355 Town Center Road, Milberg Weiss Bershad Hynes & Lerach LLP (Boca Raton), FL 33486
    561.361.5000 ·
  4. Much Shelist Freed Denenberg Ament & Rubenstein, PC

    800-470-6824 312-621-1750 ·
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