SAN DIEGO, Jan. 18, 2002 (PRIMEZONE) -- Milberg Weiss (http://www.milberg.com/djorthopedics/) today announced that a class action has been commenced in the United States District Court for the Southern District of California on behalf of purchasers of DJ Orthopedics, Inc. ("DJ Orthopedics") (NYSE:DJO) stock pursuant to the DJ Orthopedics November 15, 2001 Initial Public Offering ("IPO").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from November 30, 2001. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach or Darren Robbins of Milberg Weiss at 800/449-4900 or via e-mail at wsl@milberg.com. If you are a member of this class, you can join this class action online at http://www.milberg.com/djorthopedics/. 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.
The complaint charges DJ Orthopedics, certain of its officers and directors and its underwriters with violations of the Securities Act of 1933. On November 15, 2001, DJ Orthopedics completed an IPO of 9 million shares of stock pursuant to a Registration Statement/Prospectus. The offering was priced at $17 per share for total proceeds of $153 million. In the Prospectus, the defendants represented that the Company was dependent, in part, on international sales to fuel its revenue growth and profitability.
The complaint alleges that the statements in the Prospectus regarding DJ Orthopedics' international sales and the accompanying risk disclosures regarding DJ Orthopedics' ability to generate such growth were false and misleading and contained material omissions when made. In actuality, by the time of the IPO, DJ Orthopedics had known that its stock price of $17 reflected the defendants' contention that DJ Orthopedics would achieve its Q4 01 earnings estimates. Prior to the IPO, defendants knew that DJ Orthopedics would not achieve its Q4 earnings estimates. Moreover, this information was disclosed to certain of the underwriting defendants' sales people who, as a result of the change in the Company's Q4 projections, declined to support or otherwise purchase the shares in the "after market." Thus, contrary to the representations in the Prospectus and obligations of the defendants, the Prospectus omitted to state material facts, rendering the Prospectus false and misleading. Public investors who purchased shares traceable to the IPO based on DJ Orthopedics' representations, paying $17 per share for DJ Orthopedics stock, have suffered damages.
Then, on or about December 12, 2001, DJ Orthopedics filed an S-1 Registration Statement which disclosed the existence of the complaint. Despite the material allegations in the complaint, the defendants claimed in the S-1 that the "allegations lack merit." Counsel for plaintiff and the putative class intend to pursue swift and vigorous recovery of the monies lost as the result of defendants' actions and, in the alternative, the recission of the purchases of the Company's shares.
Plaintiff seeks to recover damages on behalf of all purchasers of DJ Orthopedics stock pursuant to the IPO (the "Class"). The plaintiff is represented by Milberg Weiss Bershad Hynes & Lerach LLP, who has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Milberg Weiss Bershad Hynes & Lerach LLP, a 170-lawyer firm with offices in New York, San Diego, San Francisco, Los Angeles, Boca Raton, Seattle and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of World War II and other human rights violations, and has been responsible for more than $30 billion in aggregate recoveries. The Milberg Weiss website (http://www.milberg.com) has more information about the firm.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.