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Shareholders Seek Recovery in Class Action Lawsuit against SFBC International, Inc. -- SFCC

20 January 2006

Labaton Sucharow & Rudoff LLP has filed a class action lawsuit in the United States District Court for the District of New Jersey, on behalf of persons who purchased or otherwise acquired publicly traded securities of SFBC International, Inc. ("SFBC" or the "Company") (Nasdaq:SFCC) between August 4, 2003 and December 15, 2005, inclusive, (the "Class Period"). The lawsuit was filed against SFBC and certain officers and directors ("Defendants").


If you are a member of this class you can view a copy of the complaint and join this class action online at http://www.labaton.com/get/?case=SFBC


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 failed to disclose or misrepresented the following material adverse facts which were known to Defendants or recklessly disregarded by them:


-- The Company failed to prevent participants from applying


to concurrent drug trials at other facilities run by the


Company;


-- The Company engaged in highly improper and reckless recruiting


processes;


-- The Company used unethical compensation schemes to assure


that its trial participants did not report adverse reactions


to drugs;


-- The Company kept in place management structures and regulatory


controls which were wrought with conflicts of interest;


-- As a result, a material portion of SFBC's revenue growth


resulted from, and was anticipated to continue to be generated


from, highly improper business practices and faulty drug trials;


-- Defendants hid their improper business practices so that SFBC


could continue to report positive trends in revenue, earnings,


and stress their ability to outperform the competition due


to the large number of testers and facilities it could operate


and its ability to quickly.


On November 2, 2005, certain issues concerning the health safety of human drug testing at SFBC were revealed. In reaction to the news article, shares of SFBC declined almost $10 per share, or approximately 26.3% to close at $27.91 per share on November 3, 2005. On November 16, 2005, Bloomberg revealed that SFBC had threatened using deportation for Latin American immigrants who participated in its trials who disclosed the health risks in the Company's administration of these trials. SFBC reacted negatively to this news as well, falling $7.20 per share, or 21.7% to close at $25.97 per share. On December 15, 2005, SFBC lowered its profit expectations for 2005 to a range of $1.56 to $1.61 per share from a previous range of $1.66 to $1.72 per share. Additionally, on that day, Bloomberg published another article where it indicated that nine participants in a September drug trial tested positive for latent tuberculosis. In reaction to this news shares of SFBC fell $1.88 per share, or approximately 10.7% to close at $15.78 per share on December 15, 2005.


Plaintiffs are represented by the law firm of Labaton Sucharow & Rudoff LLP. Labaton Sucharow is one of the country's premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts.


If you bought SFBC securities between August 4, 2003 and December 15, 2005, inclusive, you may qualify to serve as Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than March 6, 2006. If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, please contact one of our representatives or Christopher Keller, Esq. at 800-321-0476.


More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.


CONTACT: Labaton Sucharow & Rudoff LLP


Christopher Keller, Esq.


(800) 321-0476

Source: primezone


All trademarks and copyrighted information contained herein are the property of their respective owners.


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