Premier faces class action suit over laser public relations:
This article was originally published in Clinica
Executive Summary
Premier Laser Systems is accused in a class action suit of artificially inflating its share price by conducting a US public relations campaign promoting the financial benefits of its new dental laser. The company, of San Diego, claimed that the launch of its Centauri Er:YAG laser would mean that Premier would generate $40 million in sales in fiscal 1998. Following the admission that distributor Henry Schein would not promote the device, the company's share price fell from $16 to just $5. International accountancy firm, Ernst & Young, has also quit as the company's auditors.