NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/biolaseinc/) today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Biolase, Inc. (“Biolase”) (NASDAQ:BIOL) common stock during the period between January 7, 2013 and August 12, 2013 (the “Class Period”).
“the cash generated from operations and the borrowings available under the lines of credit with Comerica [would] be sufficient to fund [Biolase’s] working capital requirements for 2013”
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/biolaseinc/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Biolase and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Biolase manufactures and distributes dental lasers.
The complaint alleges that during the Class Period, defendants issued false and misleading statements regarding Biolase’s business and future prospects. Specifically, defendants failed to disclose and/or concealed the following adverse facts during the Class Period: (a) contrary to defendants’ statements during the Class Period, there is little evidence demonstrating the use of dental lasers (instead of drills) provides long-term benefits to teeth, and because both children and adults can have cavities filled without the numbing injections Biolase claims its WaterLase products preclude, only 5% of dental offices use dental lasers and dentists were hesitant to adopt dental lasers – especially Biolase’s – because of their high costs; (b) due to the relatively high costs associated with its dental laser offerings, Biolase’s efforts to switch to a direct sales model in the United States during the Class Period were failing; (c) contrary to defendants’ Class Period statements, the high debt burden the Company assumed to exit its arrangement with the former exclusive distributor of its WaterLase products, coupled with the onerous terms of certain of its Comerica lines of credit, were financially handicapping the Company; and (d) contrary to defendants’ Class Period statements that “the cash generated from operations and the borrowings available under the lines of credit with Comerica [would] be sufficient to fund [Biolase’s] working capital requirements for 2013,” there was no cash being generated from operations and the Company was in default of its Comerica lines of credit.
On August 7, 2013, Biolase issued a press release announcing its second quarter 2013 financial results. Rather than the $15.69 million in revenues defendants had led the market to expect, Biolase reported revenues of just $14.2 million – down 2.74% from the $14.6 million the Company had reported in the fourth quarter 2012 – and a loss of $.06 per share. Then, on August 13, 2013, before the markets opened, the Company announced that it was in violation of its bank covenants. On the news of the revenue and earnings misses and the Company’s violation of prior debt covenants, the price of Biolase common stock, which had traded as high as $6.05 per share in intraday trading during the Class Period, fell more than 80% from that level to close at $1.19 per share on August 13, 2013.
Plaintiff seeks to recover damages on behalf of all purchasers of Biolase common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries and has been ranked number one in the number of shareholder class action recoveries in MSCI’s Top SCAS 50 every year since 2003. Please visit http://www.rgrdlaw.com for more information.