Class action against Lumenis extended to include Q1 2002 earnings warning - TheStreet

The pile of requests for class action suits against Lumenis (Nasdaq: LUME) just got higher. In addition to the numerous requests regarding information the company released on February 28, 2002 regarding Q4 2001, a request regarding the company¿s latest earnings warning was just filed.

Law firm Milberg Weiss informed the United States District Court, Southern District of New York, that it is extending the class period in its request to cover from August 2, 2001 up to and inclusive of May 7, 2002, the date the company announced it would not meet earlier projections for Q1 and just one week before the scheduled publication of its Q1 financial results.

The law suit names the company itself, chairman of the board and former Bank of Israel governor Jacob Frenkel, CEO Yacha Sutton, COO Sagi Genger and Asif Adil, who served as CFO until recently.

The plaintiff claims to have acquired the company's shares at inflated prices, artificially pumped up by the inaccurate reporting and material misrepresentation to the public of the company's actual financial state. "The defendants issued materially false and misleading statements regarding the company's financial performance and stated that the company was successfully executing its business plan and that demand for the company's products remained strong," states the claim

Lumenis's response was unavailable at press time.