Cases

America Service Group, Inc. Accounting Fraud Class Action

Gardy & Notis, LLP has filed a lawsuit for purchasers of America Service Group, Inc. (NASDAQ:ASGRE) stock between September 24, 2003 to March 16, 2006, charging that America Service Group and its top executive officers engaged in accounting fraud and violated the federal securities laws by misleading investors and failing to disclose that (1) America Service was not charging its customers in accordance with their contracts; (2) America Service failed to properly credit customers with discounts, rebates, and price concessions; (3) America Service failed to provide customers with appropriate credits for returned pharmaceutical products; and (4) America Service inappropriately established and utilized reserves to help it more closely meet budgeted results.

After the close of trading on March 15, 2006, America Service announced that it will restate its previously reported earnings for all of 2001, 2002, 2003, 2004, and the first six months of 2005, and issue refunds to customers where it failed to appropriately credit their accounts. America Service shares fell $5.65 per share, or approximately 29%, to close at $13.95 per share in reaction to the announcement.

The case is Schwartz v. America Service Group, Inc., in the United States District Court for the Middle District of Tennessee.

For more information regarding the lawsuit or to obtain a copy of the complaint or any Court filings, please contact us.