The Law Firm of Goldman Scarlato & Karon, P.C. Announces Class Action Lawsuit Against World Health Alternatives, Inc.

The Law Firm of Goldman Scarlato & Karon, P.C. Announces Class Action Lawsuit Against World Health Alternatives, Inc.

CONSHOHOCKEN, Pa.--(BUSINESS WIRE)--Aug. 29, 2005--Goldman Scarlato & Karon, P.C., a law firm with offices in Pennsylvania and Ohio, announces that a lawsuit has been filed in the United States District Court for the Western District of Pennsylvania, on behalf of persons who have purchased or otherwise acquired the publicly traded securities of World Health Alternatives, Inc. ("World Health" or the "Company") (OTCBB: WHAIE) between October 7, 2003 and August 18, 2005, inclusive, (the "Class Period"). The lawsuit was filed against World Health, certain officers and directors and its former auditors ("Defendants").

If you are a member of this class and wish to view a copy of a complaint and join this class action, please e-mail us at penny@gsk-law.com and request a copy of the complaint and a plaintiff certification. If you are a member of the Class, you may move the Court no later than October 24, 2005 to serve as a lead plaintiff for the Class. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. However, if you choose to remain an absent class member, unless and until a class is certified, you are not represented by counsel.

The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that the Company's financial statements during the class period were materially false and misleading as the Company (1) underpaid taxes owed by approximately $4 million, and thus overstated net income by the same amount; (2) was in breach of its lending agreements as a result of having misrepresented its financial condition; (3) misrepresented the amount of debentures and warrants associated with the Company's preferred stock; and (4) misstated, in public filings, the academic credentials of its President and Chief Executive Officer. As a result of this activity, the Company has terminated its external auditor, its CEO has resigned, and the Company's audit committee has retained outside counsel to assist with an investigation into the allegations. The Company has also announced that it will be restating its financial results.

The announcements of this activity shocked the market and World Health's share price has plummeted nearly 86% to trade as low as $0.25 per share, after closing at $1.85 per share on August 18, 2005.

If you bought World Health securities between October 7, 2003 and August 18, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (888) 753-2796 to speak with an advisor.
 
Contacts 

The Law Firm of Goldman Scarlato & Karon, P.C.
Brian Penny, Esq., 888-753-2796