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Glancy Binkow & Goldberg LLP, Representing Investors Who Purchased Celera Corporation, Announces Class Action Lawsuit and Seeks

^{Published on 2010-07-02 18:40:45 - Market Wire}
 

LOS ANGELES--([ BUSINESS WIRE ])--Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a class action lawsuit in the United States District Court for the Northern District of California on behalf of a class consisting of all persons or entities who purchased the common stock of Celera Corporation (aCeleraa or the aCompanya) (NASDAQ:CRA) between April 24, 2008 and July 22, 2009, inclusive (the aClass Perioda).

"significant charges in the second quarter of 2009 for bad debt expense and impairment of goodwill and intangible assets."

A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at [ shareholders@glancylaw.com ], or visit our website at [ http://www.glancylaw.com ].

The Complaint charges Celera and certain of the Companya™s executive officers with violations of federal securities laws. Celera is a healthcare business focused on the integration of genetic testing into routine clinical care through a combination of products and services a" including molecular diagnostic products and clinical laboratory testing services a" incorporating proprietary discoveries. The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning the Companya™s business and financial results were materially false and misleading. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (1) Celera was not adequately reserving for its allowance for bad debts in violation of Generally Accepted Accounting Principles (aGAAPa), causing its financial results to be materially misstated; (2) the Company had failed to maintain effective internal controls concerning its billing and collections processes, and (3) the Company could not substantially increase its Lab Services business that was under contract with third-party insurance payors and thus could not reduce its exposure to uncollectible accounts receivables.

On July 22, 2009, the Company announced that its asecond quarter 2009 revenues relative to the prior year quarter [were] expected to show a reduction for the Companya™s Lab Services business.a According to the Company, the Lab Services revenues were aadversely affected by lower than anticipated sample volume due to broad economic pressures, lost business as a result of the Companya™s efforts to collect aged receivables, and the denial of reimbursement on a number of legacy...tests by certain payors in some regions.a In addition, Celera expected to record asignificant charges in the second quarter of 2009 for bad debt expense and impairment of goodwill and intangible assets.a

As a result of this news, the price of Celera stock tumbled $1.91 per share, to close at $5.83 per share on July 23, 2009, a one-day decline of nearly 25% on trading volume of 7.9 million shares a" sixteen times the average three-month volume.

Plaintiff seeks to recover damages on behalf of class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.

If you are a member of the class described above, you may move the Court, no later than August 13, 2010, 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 Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224, by e-mail to [ shareholders@glancylaw.com ], or visit our website at [ http://www.glancylaw.com ].