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Biotech / Medical : Ergobilt (ERGB) - Ergonomic Chairs -- Ignore unavailable to you. Want to Upgrade?

To: tonto who wrote (853)	7/9/1998 1:00:00 PM
From: tonto	Read Replies (1) \| Respond to of 900

Wednesday July 8, 4:32 pm Eastern Time Company Press Release Class Action Filed Against Ergobilt, Inc. and Others NEW YORK--(BUSINESS WIRE)--July 8, 1998--Notice is hereby given that a class action lawsuit was filed on June 22, 1998 in the United States District Court for the Northern District of Texas, Dallas Division, on behalf of all persons who purchased or otherwise acquired the common stock of Ergobilt, Inc. (NASDAQ: ERGB - news; ''Ergobilt'' or the ''Company'') between February 3, 1997 and May 14, 1998, inclusive (the ''Class Period''), including all persons who purchased Ergobilt common stock issued in connection with the Company's initial public offering (''IPO'') on February 3, 1997. The complaint charges Ergobilt and certain officers and directors of the Company during the relevant time period with violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, by, among other things, making false and misleading statements in the Registration Statement/Prospectus issued in connection with the IPO and by issuing false and misleading statements and press releases concerning Ergobilt's operating results. Because of the issuance of a series of false and misleading statements and press releases concerning Ergobilt's operating results, the price of Ergobilt common stock was artificially inflated during the Class Period. On May 14, 1998, Ergobilt issued a press release announcing that it expects to report a loss of $2 million for the year ended February 28, 1998, due to accounting errors which materially overstated revenues and understated expenses during previously reported quarterly periods which will be restated pending completion of a ''special audit.'' Following this announcement, the price of Ergobilt common stock closed down at $3.25 per share, a decline of 80% from a Class Period high of $14.75 reached on September 18, 1997 and a decline of 53% from the IPO price of $7.00 per share. At present, Ergobilt common stock trades for $1.53 per share. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Milberg Weiss Bershad Hynes & Lerach LLP (''Milberg Weiss''), among others. Milberg Weiss maintains offices in New York City, San Diego, Los Angeles and San Francisco and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in numerous important actions on behalf of defrauded investors, and is responsible for a number of outstanding recoveries which, in the aggregate, total approximately $2 billion. For more information about Milberg Weiss, please visit our website at www.milberg.com. If you are a member of the class described above, you may, not later than sixty days from June 22, 1998 move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Milberg Weiss (Steven G. Schulman or Samuel H. Rudman) at One Pennsylvania Plaza, 49th Floor, New York, New York 10119-0165. Contact: Milberg Weiss Bershad Hynes & Lerach LLP Steven G. Schulman Samuel H. Rudman E-Mail: classact@microweb.com. 1-800-320-5081