NEW YORK, April 26, 2012 /PRNewswire/ --Bernstein Liebhard LLP today announced that a securities class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers (the "Class") of Swisher Hygiene Inc. ("Swisher" or the "Company") (Nasdaq: SWSH) securities between May 16, 2011 and March 28, 2012 (the "Class Period"). The Complaint charges Swisher and certain of the Company's executive officers with violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Swisher provides hygiene and sanitation solutions in North America and internationally. The Complaint alleges that throughout the Class Period the defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about Swisher's business, operations and prospects. Specifically, the Complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company was improperly accounting for business acquisitions; (2) that the Company was improperly calculating its allowance for doubtful accounts receivable; (3) that, as a result, the Company's income was overstated; (4) that, as such, the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles; (5) that the Company lacked adequate internal and financial controls; and (6) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On March 28, 2012, Swisher disclosed that its previously issued financial results for the first, second and third quarter of 2011 should no longer be relied upon and may have to be restated. The Company informed investors that the Company's Audit Committee was conducting an ongoing internal review relating to possible adjustments to (1) the accounting for business acquisitions and (2) the calculation of the allowance of doubtful accounts receivable. According to the Company, the Audit Committee initiated its review after an informal inquiry by the Company regarding a former employee's concerns with respect to certain of the Company's accounting policies.As a result of this news, shares of Swisher declined $0.29 per share, or 9.51%, to close on March 28, 2012, at $2.76 per share, on unusually heavy volume, and further declined $0.33 per share, or 11.96%, to close on March 29, 2012, at $2.43 per share, also on unusually heavy volume. Plaintiffs seek to recover damages on behalf of all Class members who purchased or otherwise acquired Swisher securities during the Class Period. If you purchased or otherwise acquired Swisher securities during the Class Period, and either lost money on the transaction or still hold the shares, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than May 29, 2012. A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.