A Deadline is coming up on October 22, 2013 in the lawsuit for investors in BIOLASE Inc (NASDAQ:BIOL) and NASDAQ:BIOL stockholders should contact the Shareholders Foundation at firstname.lastname@example.org
San Diego, CA -- (SBWIRE) -- 10/16/2013 -- A deadline is coming up on October 22, 2013 in the lawsuit filed for investors of BIOLASE Inc (NASDAQ:BIOL) over alleged securities laws violations by Biolase Inc.
Investors with a substantial investment in BIOLASE Inc (NASDAQ:BIOL) shares between January 7, 2013 and August 12, 2013, should get active before the Deadline that is coming up on October 22, 2013, and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint filed in the U.S. District Court for the Central District of California the plaintiff alleges on behalf of purchasers of BIOLASE Inc (NASDAQ:BIOL) between January 7, 2013 and August 12, 2013, that BIOLASE Inc and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff alleges that defendants failed to disclose and/or concealed between January 7, 2013 and August 12, 2013, that contrary to defendants’ statements between January 7, 2013 and August 12, 2013, 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, that 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 between January 7, 2013 and August 12, 2013 were failing, that contrary to defendants’ statements between January 7, 2013 and August 12, 2013, 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 that contrary to defendants’ statements between January 7, 2013 and August 12, 2013 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 13, 2013, BIOLASE Inc announced that Comerica Bank agreed to waive BIOLASE's® non-compliance with a condition in the Loan and Security Agreement, dated May 24, 2012, by and between BIOLASE Inc and Comerica Bank, as amended (the "Loan Agreement"). BIOLASE Inc said that the Loan Agreement required that, as of June 30, 2013, BIOLASE's earnings before interest, taxes, depreciation, and amortization could not be less than ($500,000). BIOLASE Inc said that Comerica Bank agreed to waive this requirement, provided that BIOLASE andComerica agree upon a further amendment to the Loan Agreement containing revised financial covenants by September 13, 2013, and further agreed that until such time, the total amount borrowed under the Loan Agreement cannot exceed $7.5 million.
Shares of BIOLASE Inc declined from $3.75 per share on August 2, 2013 to $1.19 per share on August 14, 2013.
Those who purchased shares of BIOLASE Inc have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego