NEW YORK, Dec. 13, 2007 (PRIME NEWSWIRE) -- Roy Jacobs & Associates announces that it is investigating possible securities and other legal violations regarding today's announcement by American Dental Partners, Inc. ("American Dental" or the "Company") (Nasdaq:ADPI) that a jury has awarded damages against it of $88 million in favor of one of its affiliated practices, finding that American Dental was liable for breach of the implied covenant of good faith and fair dealing, breach of fiduciary duty, tortious interference with contract or prospective advantage and defamation. The jury is also considering whether to impose punitive damages.
With better knowledge of the Company's prospects than the investing public, in May 2007 insiders sold large amounts of stock at prices in the $21-26 range. Chief Executive Officer Gregory Serrao sold approximately 100,000 of his own shares for proceeds of nearly $2.5 million and Chief Operating Officer Michael Vaughn sold approximately 72,000 of his own shares for proceeds of $1.8 million.
As a result of this jury verdict, which was in no way anticipated by the investing public, American Dental shares have dropped approximately 63% on greatly increased trading volume, to a price of approximately $5.30 per share. This has wiped out approximately $100 million in shareholder value.
If you: (i) have currently held American Dental shares since before February 6, 2006 and expect to continue to hold them; or (ii) purchased American Dental shares after February 6, 2006 in the open market and still hold them at a loss or if you have sold them today at a loss, and are interested in discussing your rights free of charge, please contact Roy L. Jacobs. Mr. Jacobs will speak with you personally at no cost or obligation.