The law firm of Wohl & Fruchter LLP is investigating possible violations of federal securities laws by officers and directors of BIOLASE, Inc. (Biolase) (NASDAQ: BIOL).
On August 7, 2013, after the close of the market, Biolase issued a press release announcing its financial and operating results for the second quarter ended June 30, 2013. In the release, the Company disclosed, among other things, that it “no longer expects to generate cash from operations overall for the year ending December 31, 2013,” and that its cash balances as of June 30, 2013 totaled approximately $2.1 million.
Subsequently, in its Form 10-Q filed on August 9, 2013, the Company disclosed that, on August 5, 2013, the Company’s lender, Comerica Bank (Comerica) waived the Company’s noncompliance with the minimum EBITDA covenant in the agreement governing the Company’s revolving credit facility with Comerica. However, in connection with the waiver, the Company’s borrowing capacity under the facility was reduced from $10.0 million to $7.5 million, pending agreement with Comerica on amended covenants.
Upon the above and other negative news, BIOL shares declined over 53% over seven trading days, from a close of $3.42/share on August 7, 2013, to a close of $1.60/share on August 16, 2013.Wohl & Fruchter’s investigation concerns whether Biolase management has improperly concealed from investors, among other things, the severity of the Company’s liquidity problems. Persons with relevant information, and BIOL shareholders with questions about this investigation, are invited to contact the attorney below, or our Firm by calling 866.833.6245. Additional information is available on our website at: http://www.wohlfruchter.com/cases/biol. About Wohl & Fruchter Wohl & Fruchter LLP represents plaintiffs in litigation arising from fraud and other fiduciary breaches by corporate managers, as well as other complex litigation matters. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners. This release may be deemed to constitute attorney advertising.