A Medical Device Daily Staff Report

An investor filed suit against SeraCare Life Sciences (Oceanside, California) in federal court, accusing the company of fraud.

Berman DeValerio of the law firm Berman DeValerio Pease Tabacco Burt & Pucillo, filed the class action in the U.S. District Court for the Southern District of California.

The complaint alleges that the defendants issued materially false and misleading statements that artificially inflated the company's stock price. The complaint seeks damages for violations of federal securities laws on behalf of all investors who purchased SeraCare common stock between Feb. 9, 2005 and Dec. 19, 2005.

According to the complaint, SeraCare's stock price fell by as much as 62% on Dec. 20, 2005, after the company revealed that its independent auditors had issued a report about allegedly deceptive accounting issues. The Nasdaq market subsequently delisted SeraCare's shares.

SeraCare makes biological products and provides services for diagnostic, therapeutic, drug discovery and research organizations.