Case Page

 

Case Status:    SETTLED
On or around 06/12/2007 (Date of order of final judgment)

Filing Date: August 24, 2005

According to the docket, on November 27, 2006 settlement proceedings began with the entry of a Stipulation of Settlement by lead plaintiffs. Motions for preliminary approval of the settlement were then granted on February 1, 2007. One class member objected to the proposed settlement; his objections were denied on June 8, 2007. Four days later, on June 12, the judge entered his final order and awarded attorneys' fees and expenses in the amount of $756,000.00 in cash and 28% of proceeds of any sale of Settlement Stock and reimbursement of expenses in the amount of $75,628.00.

On November 21, 2005, the Court entered the Order granting the motion to appoint Columbus Capital Partners, L.P. and Columbus Offshore, Ltd. as lead plaintiff. On April 21, 2006, the plaintiffs filed a Consolidated Class Action Complaint. On July 25, 2006, the plaintiffs filed a Notice of Voluntary Dismissal of defendant Manhattan Transfer Registrar Co.

Several purported shareholder class action lawsuits have been filed against World Health Alternatives, its certain of its former officers and its former auditor with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.

Specifically, the complaint alleges that throughout the Class Period, Defendants made false and misleading statements to artificially inflate the value of World Health stock, statements which the Company now admits require restatement. On August 19, 2005, the Company announced that it had commenced an investigation into a series of manipulations of the Company’s published financial statements and operating results. The Company identified at least four major discrepancies: (1) misstatements of the amount of the Company’s outstanding shares; (2) its failure to properly account for convertible debt and warrant agreements; (3) its underpayment of tax liabilities in the amount of $4 million; and (4) misstatements to Company lenders resulting in $6.5 million in excess funding under the loan agreements. As a result of this activity, the Company has terminated its outside auditor, Daszkal Bolton LLP, the Company’s CEO resigned, it has retained outside counsel and the Board of Directors has retained special counsel to assist it with its investigation. The Company will be restating its prior financial statements due to the material misstatements outlined above and has warned investors not to rely on the information contained therein.

The complaint further alleges that the Company’s restatement announcement shocked the market and the price of its common stock plummeted an astonishing 86% on August 19, 2005, trading as low as $0.25 per share after closing on August 18, 2005 at $1.85 per share. Trading on a volume 15 times greater than its average, on August 19, 2005, 32 million shares changed hands.

A similar, purported class action lawsuit has also been filed in the United States District Court for the Southern District of Florida.

NOTE: The company filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in February 2006 and is no longer named a defendant in the action.

COMPANY INFORMATION:

Sector: Services
Industry: Business Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: WHAI
Company Market: OTC-BB
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: W.D. Pennsylvania
DOCKET #: 05-CV-01194
JUDGE: Hon. Thomas M. Hardiman
DATE FILED: 08/24/2005
CLASS PERIOD START: 10/07/2003
CLASS PERIOD END: 08/18/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abbey Gardy, LLP (New York)
    212 East 39th Street, Abbey Gardy, LLP (New York), NY 10016
    212.889.3700 · info@abbeygardy.com
  2. Barrack, Rodos & Bacine (Main office, Philadelphia)
    Two Commerce Square, 2001 Market Street, Suite 3300 , Barrack, Rodos & Bacine (Main office, Philadelphia), PA 19103
    215.963.0600 215.963.0838 · info@barrack.com
  3. Chitwood Harley Harnes LLP (Atlanta)
    2300 Promenade II; 1230 Peachtree Street, N.E., Chitwood Harley Harnes LLP (Atlanta), GA 30309
    888.873.3999 404.876.4476 · info@chitwoodlaw.com
  4. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC)
    1100 New York Avenue, N.W., Suite 500, West Tower, Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC), DC 20005
    202.408.4600 202.408.4699 · lawinfo@cmht.com
  5. 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
  6. Federman & Sherwood (Oklahoma City)
    120 North Robinson, Suite 2720, Federman & Sherwood (Oklahoma City), OK 73102
    405-235-1560 · wfederman@aol.com
  7. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  8. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  9. Mager & Goldstein LLP (Coral Springs)
    2825 University Drive, Suite 350, Mager & Goldstein LLP (Coral Springs), FL 33065
    866-274-8258 954-341-0855 · jgoldstein@mwg-law.com
  10. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
  11. Murray, Frank & Sailer LLP
    275 Madison Ave 34th Flr, Murray, Frank & Sailer LLP, NY 10016
    212.682.1818 212.682.1892 · email@murrayfrank.com
  12. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  13. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  14. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  15. Smith & Smith LLP
    3070 Bristol Pike, Suite 112, Smith & Smith LLP, PA 19020
    215.638.4847 215.638.4867 ·
  16. The Brualdi Law Firm (New York)
    29 Broadway, Suite 2400, The Brualdi Law Firm (New York), NY 10006
    877.495.1187 212.952.0608 · rbrualdi@brualdilawfirm.com
  17. Wechsler Harwood LLP
    488 Madison Avenue 8th Floor, Wechsler Harwood LLP, NY 10022
    212.935.7400 · info@whhf.com
  18. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
No Document Title Filing Date
COURT: W.D. Pennsylvania
DOCKET #: 05-CV-01194
JUDGE: Hon. Thomas M. Hardiman
DATE FILED: 04/21/2006
CLASS PERIOD START: 08/17/2004
CLASS PERIOD END: 08/19/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abbey Gardy, LLP (New York)
    212 East 39th Street, Abbey Gardy, LLP (New York), NY 10016
    212.889.3700 · info@abbeygardy.com
  2. Barrack, Rodos & Bacine (Main office, Philadelphia)
    Two Commerce Square, 2001 Market Street, Suite 3300 , Barrack, Rodos & Bacine (Main office, Philadelphia), PA 19103
    215.963.0600 215.963.0838 · info@barrack.com
  3. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  4. Chitwood Harley Harnes LLP (Atlanta)
    2300 Promenade II; 1230 Peachtree Street, N.E., Chitwood Harley Harnes LLP (Atlanta), GA 30309
    888.873.3999 404.876.4476 · info@chitwoodlaw.com
  5. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC)
    1100 New York Avenue, N.W., Suite 500, West Tower, Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC), DC 20005
    202.408.4600 202.408.4699 · lawinfo@cmht.com
  6. 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
  7. Law Offices of Alfred G. Yates
    519 Alleghany Bldg., 429 Forbes Avenue, Law Offices of Alfred G. Yates, PA 15219
    412.391.5164 ·
  8. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    58 South Service Road, Suite 200, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
  9. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
No Document Title Filing Date
No Document Title Filing Date