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Slutsky, et al. v. Endocare Inc., et al. 02-CV-8429-Class...
Transcript of Slutsky, et al. v. Endocare Inc., et al. 02-CV-8429-Class...
1 MILBERG WEISS BERSHADHYNES & LERACH 'LLP
2 WILLIAM S. LERACH (68581)DARREN. J. ROBBINS (168593)
3 401 B Street, Suite 1700 --.,San Diego, CA 92101 L ,-, -,•4 Telephone: 619/231-1058
619/231-7423 (fax) F5JEFFREY N. BERNSTEIN
6 ATTORNEY AT LAW525 Northern Blvd., Suite 210
7 Great Neck, NY 11021 aTelephone: 5161466-46008 516r466-6958 (fax) n
9 Attorijs for Plaintiffs10\1\
\ I\CENTR
10UNITED STATES DISTRICT COURT
\421AL DISTRICT OF CALIFORNIA
13WESTERN DIVISION
'
14 GARY M. SLUTSKY and STACEY G. No. DI '4:'.isoSLUTSKY, On Behalf of Themselves715 and All Others Similarly Situated, CLASSPZtIgh 2 9
16 Plaintiffs, CLASS ACTION COMPLAINT FORVIOLATION OF THE FEDERAL
17 vs. SECURITIES LAWS
18 ENDOCARE, INC., PAUL IvIIKUS andJOHN V. CRACCHIOLO,
19Defendants.
20 DEMAND FOR JURY TRI61-,
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26 I , ,, .._. • , 127 ' NOV 5
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1 INTRODUCTION
2 1. This is an action on behalf of purchasers of Endocare, Inc. ("Endocare"
3 OT the "Company") publicly traded securities during the period from October 23, 2001
4 to October 30, 2002, (the "Class Period"). Endocare develops, manufactures, and
5 markets cryosurgical and stent technological devices for the tretitment of prostate
6 cancer and benign prostate hyperplasia. Endocare is also developing cryosurgical
7 technologies for treating tumors in organs such as the kidney, breast and liver.
8 2. During the Class Period, defendants caused Endocare's shares to trade
9 at artificially inflated levels through the issuance of false and misleading financial
10 statements. As a result of this inflation, Endocare was able to complete a public
11 offering of 4 million shares, raising proceeds of $68 million on November 16, 2001.
12 3. On October 30, 2002, the Company issued a press release entitled,
13 "Endocare Will Delay Release of Third Quarter Results Until Completion of Its
14 Review Process." The press release stated in part
15 Endocare Inc., a developer of innovative diagnostic treatment
16 tools for cancer and other diseases, announced today that it will delay
17 the release of its earnings for the quarter ended September 30. 2002
18 while the Company completes the review process of the quatter's
19 financial results. The Company will reschedule the reporting of its
20 financial results for the third quarter as soon as possible once this review
21 process is completed.
22 Endocare Chairman and CEO Paul Mikus said, "It is unfornmate
23 that we have to postpone the release of results for the quarter but we feel
24 that it is of the utmost importance to complete the review process of the
2.5 financial results before we release those numbers. We will inform the
26 investor community of the announcement date once the review is
27 complete and then schedule a conference call which will also he
28 accessible via our website."
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1 4. The stock dropped below $3 per share on this news.
2 JURISDICTION AND VENUE
3 5. The claims asserted arise under §§10(b) and 20(a) of the Securities
4 Exchange Act of 1934 (11 1934 Act") and Rule 10b-5 promulgated thereunder.
5 Jurisdiction is conferred by §27 of the 1934 Act, Venue is proper pursuant to §27 of
6 the 1934 Act as defendant Endocare and/or the Individual Defendants conduct
7 business in and the wrongful conduct took place in this District.
8 THE PARTIES
9 6. Plaintiff Gary M. Slutsky and Stacey G. Slutsky purchased Endocare
1.0 publicly, traded securities as detailed in the attached Certification and was damaged
11 thereby.
12 7. Defendant Endocare develops, manufactures, and markets cryosurgical
13 and stent technological devices for the treatment of prostate cancer and benign
14 prostate hyperplasia. Endocare is also developing cryosurgical technologies for
15 treating tumors in organs such as the kidney, breast and liver.
16 8. Defendant Paul Mikus ("Mikus") was Chairman, President and CEO of
17 Endocare. Mikus assisted in the preparation of the false financial statements and
18 repeated the contents therein to the market.
19 9. Defendant John V. Cracchiolo ("Cracchiolo") was CFO/C00 of
20 Endocare. Cracchiolo assisted in the preparation of the false financial statements and
21 repeated the contents therein to the market.
22 1.0. Defendants Mikus and Cra.cchiolo are the "Individual Defendants."
23 They are liable for the false statements pleaded in IV 2-17, as those statements were
24 "group-published" information.
25 BACKGROUND
26 11. Endocare develops, manufactures, and markets cryosurgical and stent
27 technological devices for the treatment of prostate cancer and benign prostate
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1 hyperplasia. End.ocare is also developing cryosurgical technologies for treating
2 tumors in organs such as the kidney, breast and liver.
3 FALSE AND MISLEADING STATEMENTSDURING THE CLASS PERIOD
41.2. On October 23, 2001, the Company issued a press release entitled,
5"Endocare Reports Record Third Quarter and Nine-Month Sales and Operational
6Results; Third Quarter Revenues Up 139 Percent; Net Loss Cut by 55 Percent." The
78 press release stated in part:
Endocare, Inc., a developer of innovative temperature-based
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10treatments for cancer and urethral obstruction, today reported that
accelerated cryosurgical system sales and the increased sale of11
12_disposable supplies requireAby , strortg growth in procedures resulted in
13a 139 percent increase in revenues for the thud quarter ended September
1430, 2001 from. last year's third quarter. Revenues for the quarter were
15$4.2 million, as compared with $1.8 million in the third quarter of 2000.
The net loss for this year's third quarter decreased to $1.3 million, or '4
16
17$0.07 loss per share, narrowing the net loss 55 percent from the $2.9
18million, or $0.22 loss per share posted in the third quarter of 2000.
,
19Gross margins as a percent of revenue grew to 69 percent for the third
20quarter of 2001 from 52 percent in last year's corresponding period.
Endocare Chairman and Chief Executive Officer Maul Milcusi said21
22the results demonstrate the growing awareness and acceptability among
23urologists and patients of the benefits of prostate cryosurgery as well as
the Company's ability to expand its channels of distribution within the24
hospital — and practice group—based urology communities.25
"Despite the events of September 11 and the ensuing economic26
turmoil and travel interruptions, we exceeded our internal goals OT1 both27
the top ancl bottom lines for the quarter. The sales results and usage data28
from the period indicate clearly that our message is being heard and that
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1 men who are seeking abetter alternative to invasive surgery or radiation
2 are taming to the cryosurgery option," he said.
3 13_ On February 19, 2002, the Company issued a press release entitled,
4 "Endocare Reports Record Fourth Quarter; Year End Results; 106 Percent Growth
5 in Procedures for Year; Quarter Revenues Up 156 Percent; Nei' Loss Cut by 92
6 Percent as Company Nears Profitability." The press release stated in part:
7 Endoeare Inc., a developer of innovative diagnostic and treatment
8 tools for cancer and other diseases, today announced that continued
9 acceleration in disposable sales driven by the fast-growing number of
10 cryoablation procedures and a steady growth in sales of the Cryoeare®
11 system led to record revenues of $5.2 million for the fourth quarter
12 ended December 31, 2001, a 156 percent increase from the $2.0 million
13 posted in the fourth quarter 2000. The net loss for this year's fourth
14 quarter decreased to $260,000, or a $0.01 loss per share, decreasing the
15 net loss by 92 percent from the $3,2 million or $0.23 loss per share for
16 last year's fourth quarter. Gross margins as a percent of revenue grew
17 to 68 percent for the fourth quarter of 2001 from 61 percent in last year's
18 corresponding period.
19 Endocare Chairman and Chief Executive Officer Paul IvIikus said
20 the results reflect the growing number of men who are seeking an
21 alternative to surgery and radiation, the corresponding rise in the
22 adoption of cryoablation by urologists, and the continuing success of
23 new distribution channels within the hospital and urology practice group
24 communities.
25 "We are proud to report continued strong enterprise growth and
26 corporate achievement for the fourth quarter and the entire year," said
27 Mikus. "Through expanded patient education and outreach programs,
28 improving clinical and long-term survival data, physician group
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1 partnerships and broadening sales force, we close the year with more
2 than 85 active Cryocare units M the United States in place, and record
3 levels of utilization. Financially, the company has never been stronger.
4 We expect to be profitable in 2002 and having successfully closed a
5 secondary offering in November have more than $83 million in cash and
6 cash equivalents on the balance sheet."
7 14. On April 23, 2002, the Company issued 4 press release entitled,
8 "Endocare Reports Results for First Quarter 2002; Record Growth, First Profitable
9 Quarter; Revenues Up 182 Percent from Same Period Last Year, Procedure 's Grow
10 220 Percent Year-Over-Year." The press release stated in part;
11 End.ocare, Inc., a developer of innovative diagnostic and treatment
12 tools for cancer and other diseases, announced today a continued strong
13 ramp in sales combined with solid contribution from the Timm Medical
14 acquisition drove revenues of $7.8 million for the quarter ended March
15 31, 2002, a 182 percent increase from $2.8 million in the first quarter of
16 last year. Revenue growth and the attainment of critical mass led to the
17 Company's first profitable quarter. Net income for the first quanta. of
18 2002 was $166,000, or $0.01 per share as compared to a loss of $2.3
19 million, or $0.15 loss per share for last year's first quarter. -CryoablEtion
20 procedures, as measured by the sales of probes and accessories,
21 continued to ramp in the first quarter to $3.2 million from $1.0 million
22 in the first quarter of 2001 and up 60 percent sequentially from $2.0
23 million in the fourth quarter of 2001.
24 15. On July 24, 2002, the Company issued a press release entitled,
25 "Endocare Reports Second Quarter, Six Months Results; Revenues Up 200 Percent
26 From Same Period Last Year, Disposable Revenues Grow 250 Percent Year-Over-
27 Year." The press release stated in part:
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1 Endocare, Inc., a. developer of innovative diagnostic and treatment
2 tools for cancer and other diseases, announced today significant growth
3 in sales and earnings, fueled by a two-fold increase in core-product
4 revenues. In addition, the Company saw strong contributions from th.e
5 former Timm Medical Group. The Company recorded revenues of
6 $11.4 million for the second quarter ended June 30, 2002, a 222 percent
7 increase from $3.5 million in the same period of last year. Net income
8 for the second quarter of 2002 was $1.1 million, or $0.05 per share as
9 compared to a loss of $2.1 million, or $0.13 loss per share for last year's
10 second quarter. Cryoablation procedures, as measured by the sales of
11 probes and accessories, grew by 250 percent from the second quarter of
12 2001.
13 Endocare Chairman and Chief Executive Officer Paul Mikus said,
14 "Our core cryoablation business exceeded our expectations during the
15 quarter and the contributions of the former Timm Medical group
16 continued to increase at a strong pace. The momentum created during
17 the AUA annual meeting drove increases in the sale of many products
18 —most significantly cryoablation equipment. The release of seven-year
19 outcomes data combined with the introduction of the Cryocare Direct
20 Access Tivi system resulted in 36 total new sites sold or placed, more than
21 twice the normal level of new sites in the period. The combination of
22 new data and new products is fueling an increase in utilization across the
23 board as physicians and patients have embraced cryoablation a,s an
24 alternative to brachytherapy."
25 Revenues for the first six months of 2002 were $19.2 million, a
26 204 percent increase from the $6.3 million for the same period last year.
27 Net income for the first half of this year was $1.3 million or $0.06 per
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1 share compared to a loss of $4.4 million, or a $0.29 loss per share for the
2 year earlier period.
3 "Operationally, we have made solid progress during the first half
4 of the year," said En docare Chief Operating Officer and Chief Financial
5 Officer John V, Cracchiolo. "Operating income was stronger than
6 expected due to revenue levels and manufacturing efficiencies, days
7 sales outstanding were driven below the 90-day mark at the end of the
8 second quarter from significantly higher levels in prior periods, no
customer represented more than 10 percent of our revenue base during
10 the second quarter and our production of CryoCath SurgiFros;tTM
11 Surgical CryoAblation System instruments is now meeting demand.'
12 The Company took a one time expense of $250,000 or
13 approximately $0,01 per share during this year's second quarter related
14 to the write-down of an investment held in Emergent Group, Inc., a
15 publicly traded company that has diminished in market value. There
16 was no contribution during the 2002 second quarter from the acquired
17 Cryomedical Sciences, Inc, assets.
18 The Company's June 30, 2002 balance sheet was strong with cash
19 and marketable securities of $63 million, total assets of $1.32 million, no
20 long term debt and shareholders' equity of $126 million.
21 16. On October 24, 2002, the Company issued a press release entitled,
22 "Endocare Comments on Third Quarter 2002 Results; Announces Date of Release and
23 Conference Call." The press release stated in part:
24 Endocare Inc., today announced that it projects results for the
25 third quarter ending September 30, 2002 that will show record levels of
26 system placements and procedure-related revenues, but weakness in
27 sales of cryoablation systems resulted in lower than expected revenues
28 and bottom line results for the period. According to the Company,
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management will provide greater detail on the quarter as well as
2 forward-looking guidance when full results are released next week.
3 17. On October 30, 2002, the Company issued a press release entitled,
4 "Eralocam Will Delay Release of Third Quarter Results Until Completion of Its
5 Review Process." The press release stated in part:
6 Endocare Inc., a developer of innovative diagnostic treatment
7 tools for cancer and other diseases, announced today that it will delay
8 the release of its earnings for the quarter ended September 30, 2002
9 while the Company completes the review process of the quarter's
10 financial results. The Company will reschedule the reporting of its
11 financial results for the third quarter as soon as possible once this review
12 process is completed.
13 Endocare Chairman and CEO Paul Mikus said, "It is unfortunate
14 that we have to postpone the release of results for the quarter but we feel
15 that it is of the utmost importance to complete the review process of the
16 financial results before we release those numbers. We will inform the
17 investor community of the announcement date once the review is
18 complete and then schedule a conference call which will also be
19 accessible via our website."
20 END °CARE'S FALSE FINANCIALREPORTING DURING THE CLASS PERIOD
2118. In order to inflate the price of Endocare's stock and complete the $68
22million Secondary Offering, defendants caused the Company to falsely report its
23results for Q3 2001 to Q2 2002 through improper revenue recognition.
2419. The Q3 2001 to Q2 2002 results were included in norm 10 -Qs filed with
2526 the SEC. The results were also included in press releases disseminated to the public.
2720. Endocare will have to adrni t that it inappropriately recorded transactions
28 included in its Q3.2001 to Q2 2002 results, and will have to restate those results to
remove millions in improperly reported revenues, such that its Q3 2001 to Q2 2002
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1 financial statements were not a fair presentation of Endocare's results and were
2 presented in violation of Generally Accepted Accounting Principles ("GAAP”) and
3 SEC rules,
4 21. GAAP are those principles recognized by the accounting profession as
5 the conventions, rules and procedures necessary to define accepted accounting
6 practice at a particular time. SEC Regulation S-X (17 C.F.R. §210.4-01(a)(1)) states
7 that financial statements filed with the SEC which are not prepared in compliance
8 with GAAP are presumed to be misleading and inaccurate, despite footnote or other
9 disclosure. Regulation S-X requires that interim financial statements must also
10 comply with GAAP, with the exception that interim financial statements need not
11 include disclosure which would be duplicative of disclosures accompanying annual
12 financial statements. 17 C.F.R. §210.10-01(a).
13 22. In Endocare's 2001 Form 10-K, it represented that it recognized revenue
14 in accordance with GAAP,.
15 23. Pursuant to GAAP, which describes the accounting for revenues,
16 revenue should not be recognized unless there is persuasive evidence of an
17 agreement, collection is probable and delivery has occurred.
18 24. During the Class Period, Endocare improperly recognized revenue even
19 though these conditions did not exist.
20 25, Ultimately, on October 30, 2002, Endocare announced that its Q3 results
21 would be delayed. However, in actuality, the Company will need to restate its Q3
22 2001 to Q2 2002 results to eliminate millions in revenue that had been improperly
23 recorded revenues and increase its past-stated expenses.
24 26. The fact that Endocare will restate its financial statements For Q3 2001
25 to Q2 2002 is an admission that the financial statements originally issued were false
26 and that the overstatement of revenues and income was material. Pursuant to GAAP,
27 as set forth in Accounting Principles Board Opinion ("APB") No. 20, the type of
28 restatement announced by Endocare was to comet for material errors in its previously
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issued financial statements. See APB No. 20, 11743. The restatement of past
2 financial statements is a disfavored method of recognizing an accounting change as
3 it dilutes confidence by investors in the financial statements, it makes it difficult to
4 compare financial statements and it is often difficult, if not impossible, to generate
5 the numbers when restatement occurs. See APB No. 20, ¶14, Thus, GAM' provides
6 that financial statements should only be restated in limited circumstances, i.e., when
7 there is a change in the reporting entity, there is a change in accounting principles
8 used or to correct an error in previously issued financial statements. Endocare's
9 restatement will not be due to a change in reporting entity or a change in accounting
10 principle but was rather due to errors in previously issued financial statements. Thus,
11 the restatement will be an admission by Endocare that its previously issued financial
12 results and its public statements regarding those results were false.
13 27. Due to these accounting improprieties, the Company presented its
14 financial results and statements in a manner which violated GAAP, including the
15 following fundamental accounting principles:
16 (a) The principle that interim financial reporting should be based upon
17 the same accounting principles and practices used to prepare annual financial
18 statements was violated (APB No. 28, 110);
19 (b) The principle that financial reporting should provide information
20 that is useful to present and potential investors and creditors and other users in
21 making rational investment, credit and similar decisions was violated (FASB
22 Statement of Concepts No, 1, 134);
23 (c) The principle that financial reporting should provide information
24 about the economic resources of an enterprise, the claims to those resources, and
25 effects of transactions, events and circumstances that change resources and claims to
26 those resources was violated (FASB Statement of Concepts No. 1, 140);
27 (d) The principle that financial reporting should provide information
28 about how management of an enterprise has discharged its stewardship responsibility
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I to owners (stockholders) for the use of enterprise resources entrusted to it was
2 violated. To the extent that management offers securities of the enterprise to the
3 public, it voluntarily accepts wider responsibilities for accountability to prospective
4 investors and to the public in general (FASB Statement of Concepts No. 1,9150);
(e) The principle that financial reporting should prdiride information
6 about an enterprise's , financial performance during a period was violated. Investors
7 and creditors often use information about the past to help in assessing the prospects
of an enterprise. Thus, although investment and credit decisions reflect investors'
9 expectations about future enterprise performance, those expectations are commonly
10 based at least partly on evaluations of past enterprise performance (FASB Statement
11 of Concepts No, 17142);
12 (t) The principle that financial reporting should be reliable in that it
13 represents what it purports to represent was violated. That information should be
14 reliable as well as relevant is a notion that is central to accounting (F'ASB Statement
15 of Concepts No. 2, N58-59);
16 (g) The principle of corn.pleteness, which means that nothing is left
17 out of the information that may be necessary to insure that it validly represents
18 underlying events and conditions was violated (FASB Statement of Concepts No. 2,
19 179); and
20 (h) The principle that conservatism be used as a prudent reaction to
21 uncertainty to try to ensure that uncertainties and risks inherent in business situations
22 are adequately considered was violated. The best way to avoid injury to mvestors is
23 to try to ensure that what is reported represents what it purports to represent (FASB
24 Statement of concepts No. 2,9[9195, 97)-
25 28. Further, the undisclosed adverse information concealed by defendants
26 daring the Class Period is the type of information which, because of SEC :regulations,
27 regulations of the national stock exchanges and customary business practice, is
28 expected by investors and securities analysts to be disclosed and i.E1 known by
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1 corporate officials and their legal and fmancial advisors to be the type of information
2 which is expected to be and must be disclosed.
3 FIRST CLAIM FOR RELIEF
4 For Violation of §10(b) of the 1934 Actand Rule 1013.5 Against All Defendants
529. Plaintiffs incorporate 111-28 by reference.
630. During the Class Period, defendants disseminated or approved the false
7statements specified above, which they knew or recklessly disregarded were
8materially false and misleading in that they contained material misrepresentations and
910 failed to disclose material facts necessary in order to make the statements made, in
11 light of the circumstances under which they were made, not misleading.
31. Defendants violated §10(b) of the 1934 Act and Rule 10b-5 in that they:12
13(a) Employed devices, schemes, and artifices to defraud;
14CO Made untrue statements of material facts or omitted to state
15 material facts necessary in order to make statements made, in light of the
circumstances under which they were made not misleading; or16
17(c) Engaged in acts, practices, and a course of business that operated
18 as a fraud or deceit upon plaintiffs and others similarly situated in connection with
their purchases of Endocare publicly traded securities during the Class Period.19
32. Plaintiffs and the Class have suffered damages in that, in reliance on the2021 integrity of the market, they paid artificially inflated prices for Endocare publicly
traded securities. Plaintiffs and the Class would not have purchased Endocare22
publicly traded securities at the prices they paid, or at all, if they had been aware that23
the market prices had been artificially and falsely inflated by defendants' misleading24
statements.25
2633. As a direct and proximate result of these defendants wrongful conduct, I
27 plaintiffs and the other members of the Class suffered damages in connection with
28 their purchases of Endocare publicly traded securities during the Class Period.
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12 For ViolationCOCof §2I 0(aF)°ofR 1the 1;3:Act
3Against All Defendants
34. Plaintiffs incorporate 1911-33 by reference.4
35. The executive officers of Endocare prepared, OT were responsible for5
preparing, the Company's press releases and SEC filings. The Individual Defendants6
controlled other employees of Endocare. Endocare controlled the Individual7
Defendants and each of its officers, executives and all of its employees. By reason8
of such conduct, defendants are liable pursuant to §20(a) of the 1934 Act,9
CLASS ACTION ALLEGATIONS10
36. Plaintiffs bring this action as a class action pursuant to Rule 23 of the1112 Federal Rules of Civil Procedure on behalf of all persons who purchased Endocare
publicly traded securities (the "Class") on the open market during the Class Period.13
Excluded from the Class are defendants, directors and officers of Endocare and their14
families and affiliates.15
37. The members of the Class are so numerous that joinder of all members1617 is impracticable. The disposition of their claims in a class action will provide
substantial benefits to the parties and the Court. During the Class Period Endocare18
had more than 24 million shares of stock outstanding, owned by thousands of19
persons.20
2138. There is a well-defined community of interest in the questions of law and
fact involved in this case. Questions of law and fact common to the members of the22
23 Class which predominate over questions which may affect individual Class members
include:24
(a) Whether the 1934 Act was violated by defendants;25
26(b) Whether defendants omitted and/ormi srepresented materi al facts;
(c) Whether defendants' statements omitted material facts necessary27
to make the statements made, in light of the circumstances under which they were28
made, not misleading; and
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1 (d) Whether defendants knew or recklessly disregarded that their
2 statements were false and misleading,
3 PRAYER
4 WHEREFORE„ plaintiffs pray for judgment as follows: declaring this action
5 to be a proper class action; awarding damages, including interest and such other
6 relief as the Court may deem proper.
7 JURY DEMAND
8 Plaintiffs demand a trial by jury.
9 DATED: November 1, 2002 MILBERG WEISS BERSHADHYNES 8E LERACH LLP10 WILLIAM S. LERACH
Ti DARREN J. ROBBINS
12
13 DARRN J. ROBBINS 414 401 B Street, Suite 1700
San Diego, CA 9210115 Telephone: 619/231-105816 619/231-7423 (fax)
JEFFREY N. BERNSTEIN17 ATTORNEY AT LAW525 Northern Blvd., Suite 21018 Great Neck, NY 11021
19 Telephone: 516/466-4600516T466-6958 (fax)
20 Attorneys for Plaintiffs21
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28 N:\CASES1COMPLNTSlendocall.4pt
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1 CERTIFICATION OF NAMED PLAINTIFFSx raW....6M___MIUMUKSAMMIthign3
GARY M. MINSKY and STACEY G. SLUTSICY ("Plaintiffsio) .4declare:
s
. 1. Plahidas have rervirored a complaint sod authorised is filing.
Z. rinintiffs did not •cqtdre the security that is the subject of this: action at the direction of plaintlia l counselor In order to participate in this
private =deo Or ow other litigation under the federal securities law.3. Plaintiffs are willing to serve as represeutadve parties on behalf of
kcthe dase, Including providlag testimony at deposition end trial, If necessary.
&t4. Plaintiffs have made the following transactions diming the Clads
LaPeriod hi the securities that are the subject of this action
13
bald& _macdin ThrLe MEZUMIttIA
ENDO u'400 ion= 9.87 .15 ENDO Buy 100 10/17/01, 9.17
ENDO Boy 100 101111102 9.04%d
ENno Boy 150 wilailli 9.5117 ENDO Day ma lemma L70
ENDO Buy 100 10/22/02 0.50
" Er4D0 Buy 100 10/22/02 7,06
19 ENDO Buy 100 10/22102 7.110
ENDO WI 300 • 10t23/02 9.01
20 E14D0 Sell IOU 10/23/02 $4521 .
22 I During the three years prier to the date plait Certificate,
23 • Plaintiffs have not sought to servo or served es 4 representative party for a
24 elate in en nation filed under the federal securities laws.it The Plaintiffs will not accept any payment Aar serving as
representative pavans on behalf of the class beyond the Plaintiff' pro rata
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Aare of any recovery; except sndi reasonable mots end expenses (iniudbigion wages) directly relating to the representation dee dm as ordered.,r
3 spprovea by the courtwe declare ander penalty of perjury duit the foregoing is true and
5 correct.Emoted this 1st day of November 2003.
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UNITED STATES DISTRICT COURTCENTRAL DISTRICT OF CALIFORNIA
-n••n • n••nIy•
GARY H. SLUTS/CY and STACEY G. SLUTS/CY, CASE NUMBEROn Behalf of Themselves and All OthersSimilarly Si- tuated,
CV- 2 8 ” 1DT
PLAINTIFF(S),V.
ENDOCARE, INC., PAUL MIKUS and JOEN V. SUMMONSCRACCETOLO,
• DEFENDANT(S). TO; THE ABOVE-NAMED DEFENDANT(S)<%
YOU ARE HEREBY SUMMONED and reque9 file with this court and serve upon plaintiff's attorney
William S. Leradh , wtttot kdress is:MILBERG WEISS BERSRAD !LYNES 4 LERACR LLP401 B Street ' Suite 1700an Diego, CA 92101
619-231-1058 AdPflOir.,.
cr •4- 4.
An answer to the RI COMPLAINT, 0 A. NDED COMPLAINT,etc;
0 COUNTERCLAIM, 0 CROSS -CLAIM which I s-- ateted pbn you within _2° days afterservice of this summons upon you, exclusive of the day of service. If you
f 'toot so, judgment by default will.1"be taken against you far the relief demanded in the complaint. et,)
CLERK, U. S. DISTRICT COW'
DATE: N oy 4_244_ By EDWIN SA
Dep er
(SEAL OP He COMO*-4
CV-1A 0//01) SUMMONS