BOSTON, April 10, 2012 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, has filed a securities class action lawsuit on behalf of investors who purchased Swisher Hygiene Inc. ("Swisher" or the "Company") (NASDAQ: SWSH) stock between May 16, 2011 and March 28, 2012, inclusive (the "Class Period"). The lawsuit, captioned Birch v. Swisher Hygiene Inc., No. 3:12-cv-00221, is pending in the United States District Court for the Western District of North Carolina.
The lawsuit alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the SEC.
Throughout the Class Period, Defendants repeatedly touted the Company's financial strength and future prospects. These statements, however, were materially false and misleading when made because the Company: (1) was improperly accounting for business acquisitions; (2) was improperly calculating its allowance for doubtful accounts receivable; (3) was overstating its income; (4) was preparing and filing financial reports in violation of Generally Accepted Accounting Principles ("GAAP"); and (5) failed to have adequate internal and financial controls.
On March 28, 2012, Swisher disclosed that its previously-announced financial results for the first, second and third quarter of 2011 should no longer be relied upon and that its Audit Committee was conducting an ongoing internal review, which was initiated following a concern raised by a former employee. On this news, shares of Swisher Hygiene stock declined $0.29 per share, or more than 9.5%, to close on March 28, 2012, at $2.76 per share. The Company's stock declined another $0.33 per share, or nearly 12%, on March 29, 2012.
If you are a member of the Class, you may, no later than May 29, 2012, request that the Court appoint you as Lead Plaintiff for the Class. You may contact the attorneys at Block & Leviton to discuss your rights in the case. You may also retain counsel of your choice and you need not take any action at this time to be a class member.
Block & Leviton is a Boston-based law firm representing investors for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 50 years.
Contact: BLOCK & LEVITON LLP
SOURCE Block & Leviton LLP