Spector, Roseman & Kodroff, P.C. Announces Class Action Lawsuit Against American Dental Partners, Inc.
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The law firm of Spector, Roseman & Kodroff, P.C. announces that a
securities class action lawsuit was commenced in the United States
District Court for the District of Massachusetts, on behalf of
purchasers of the common stock of American Dental Partners, Inc. ("ADPI”
or the "Company”)
(NASDAQ: ADPI) between August 10, 2005 through December 13, 2007,
inclusive (the "Class Period”).
ADPI is a leading provider of business services to multi-disciplinary
dental group practices in selected markets throughout the United States.
Park Dental Group ("PDG”)
located in Minneapolis-St. Paul area, was one of the dental groups who
had a long-term contract agreement with ADPI, and provided ADPI with
significant revenue. Indeed, PDG accounted for 29 percent of ADPI’s
consolidated net revenue in 2006.
The business relationship between ADPI and PDG worked well for a number
of years, but disputes arose in 2004. In February 2006, PDG sued ADPI
and its subsidiary. On December 12, 2007, in connection with the lawsuit
a jury found ADPI and/or its subsidiary liable for breach of contract,
breach of implied covenants of good faith and fair dealing, breach of
fiduciary duty, and tortious interference with contract and prospective
advantage. The jury awarded PDG $88 million to compensate it for the
injuries caused it by ADPI and its subsidiary and punitive damages of
$42 million.
After the announcement of the jury verdict, ADPI’s
stock plummeted from $19.70 a share on December 11, 2007 to $14.34 on
December 12, 2007, to $4.62 on December 13, 2007 after the announcement
of the punitive damage award.
The complaint charges ADPI and certain of its officers and directors
with violations of the federal securities laws by issuing a series of
material misrepresentations to the market during the Class Period
thereby artificially inflating the price of ADPI shares. More
specifically, the complaint alleges that ADPI financial statements
throughout the Class Period were materially false and misleading because
defendants knew that a substantial amount of ADPI’s
revenue and earnings were obtained by conduct, which was wrongful and
tortuous as found by a jury on December 12, 2007.
If you purchased ADPI securities during the Class Period, you may, no
later than March 31, 2008, move to be appointed as a Lead
Plaintiff in this class action. A Lead Plaintiff is a representative,
chosen by the Court, which acts on behalf of other class members in
directing the litigation. The Private Securities Litigation Reform Act
of 1995 directs Courts to assume that the class member(s) with the "largest
financial interest” in the outcome of the
case will best serve the class in this capacity. Courts have discretion
in determining which class member(s) have the "largest
financial interest,” and have appointed Lead
Plaintiffs with substantial losses in both absolute terms and as a
percentage of their net worth.
If you wish to join this action or have any questions concerning this
notice or your rights or interests, please contact plaintiff's counsel,
Robert M. Roseman or David Felderman, toll-free at 888-844-5862 or
e-mail at classaction@srk-law.com.
For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania,
concentrates its practice in complex litigation including actions
dealing with securities laws, antitrust, contract and commercial claims.
The firm is active in major litigation pending in federal and state
courts throughout the United States. The firm’s
reputation for excellence has been recognized on repeated occasions by
courts which have appointed the firm as lead counsel in numerous major
class actions involving violations of the federal securities laws and
the federal antitrust laws, and consumer fraud. As a result of the
efforts of the firm, and its members, hundreds of millions of dollars
have been recovered through judgments and settlements on behalf of
thousands of defrauded shareholders and companies.
