SOURCE: Kahn Gauthier Swick, LLC

April 08, 2006 00:32 ET

Shareholders Sue America Service Group, Inc. -- (NASDAQ: ASGRE) -- by KGS

NEW ORLEANS, LA -- (MARKET WIRE) -- April 8, 2006 -- Kahn Gauthier Swick, LLC ("KGS") announces that a securities class action lawsuit has been commenced in the United States District Court for the Middle District of Tennessee, on behalf of shareholders who purchased, exchanged or otherwise acquired the common stock of America Service Group, Inc. (NASDAQ: ASGRE) between September 24, 2003 and March 16, 2006. No class has yet been certified in this action.

Until a class is certified, you are not represented by counsel unless you retain an attorney.

The complaint alleges that ASGRE and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing a series of materially false and misleading statements. In particular, ASGRE failed to disclose that the values of its net income, retained earnings and reserves were materially overstated. After the market closed on March 15, 2006, ASGRE announced it would restate earnings for 2001 through 2004 and for the first six months of 2005. In response to this news, the price of ASGRE shares fell almost 29% to close at $13.95 per share.

If you acquired shares of ASGRE between September 24, 2003 and March 16, 2006 and want to discuss your legal rights, you may e-mail or call KGS, without obligation or cost to you. You may contact Lewis Kahn of KGS toll free 1-866-467-1400, ext. 100, via cell phone at 504-301-7900, or by email at lewis.kahn@kglg.com.

Contact Information

  • Contact:
    Lewis Kahn
    KGS
    Toll free: 1-866-467-1400, ext. 100
    Cell phone: 504-301-7900
    Email: lewis.kahn@kglg.com