A class action lawsuit has been filed in the United States District Court for the District of Oregon on behalf of purchasers of Computerized Thermal Imaging, Inc. (CIOB) common stock between October 11, 1999 and December 21, 2001, inclusive (the "Class Period").
The Complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10-b(5) by issuing materially false and misleading statements regarding the Company.
CTI designs, manufactures and markets thermal imaging devices and services used for clinical diagnosis, pain management and industrial non-destructive testing. Their flagship product, a Breast Cancer Detection ("BCD") System, is currently under review by the FDA. As alleged in the Complaint, CTI has admitted that during the Class Period, the Company's then-President and Chief Operating Officer, David Packer, consistently made material public misrepresentations regarding FDA approval of the BCD System. These statements had the effect of artificially raising the price of CTI stock so that investors who purchased CTI shares during the Class Period did so at inflated prices and were damaged thereby.
Plaintiff seeks to recover damages on behalf of all those who purchased CTI common stock during the Class Period, excluding defendants and their affiliates.