April 3, 2008
Candela Sued By Institutional Investor
By Matthew L. Brown
Wayland-based Candela Corp. has been sued in U.S. District Court in Massachusetts by the Western Pennsylvania Electrical Employees Pension Fund, alleging violations of the U.S. Securities and Exchange Act.
The pension fund filed a class action lawsuit Wednesday on behalf of purchasers of Candela securities. The complaint alleges that Candela made false and misleading statements about its business and financial results. Between Feb. and Aug. 2006, the company made positive statements about its earnings and outlook even as it was quickly losing market share and had been accused of patent infringement by a competitor, the complaint alleges. In late Aug. 2006, the company reported net income far below expectations, the complaint alleges.
The suit names Gerard E. Puorro, company president and CEO, and former CFO F. Paul Broyer. The company said the complaint was "without merit."
Candela develops and manufacturers laser systems for use in cosmetic and other surgeries.
The pension fund filed a class action lawsuit Wednesday on behalf of purchasers of Candela securities. The complaint alleges that Candela made false and misleading statements about its business and financial results. Between Feb. and Aug. 2006, the company made positive statements about its earnings and outlook even as it was quickly losing market share and had been accused of patent infringement by a competitor, the complaint alleges. In late Aug. 2006, the company reported net income far below expectations, the complaint alleges.
The suit names Gerard E. Puorro, company president and CEO, and former CFO F. Paul Broyer. The company said the complaint was "without merit."
Candela develops and manufacturers laser systems for use in cosmetic and other surgeries.
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