Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against LCA-Vision Inc

Business Wire, Sept 13, 2007

SAN DIEGO -- Coughlin Stoia Geller Rudman & Robbins LLP ("Coughlin Stoia") (http://www.csgrr.com/cases/lca/) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Southern District of Ohio on behalf of purchasers of LCA-Vision Inc. ("LCA") (NASDAQ:LCAV) common stock during the period between February 12, 2007 and July 30, 2007 (the "Class Period").

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Darren Robbins of Coughlin Stoia at 800-449-4900 or 619-231-1058, or via e-mail at djr@csgrr.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.csgrr.com/cases/lca/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges LCA and certain of its officers and directors with violations of the Securities Exchange Act of 1934. LCA is engaged in the provision of fixed-site laser vision correction services at its LasikPlus vision centers.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results, including EPS guidance of $2.05 to $2.15 for 2007. As a result of defendants' false statements, LCA stock traded at artificially inflated prices during the Class Period, reaching a high of $50.56 per share in July 2007.

Then, on July 31, 2007, before the market opened, LCA issued a press release announcing its financial and operational results for the three months and six months ended June 30, 2007, and in a surprise announcement retracted the Company's statements through the first seven months of the year that it would earn $2.05 to $2.15 for the year, lowering it EPS guidance for 2007 to $1.90 to $2.00. On this news, LCA's stock collapsed to close at $35.51 per share, a decline of 17%, on volume of 3.5 million shares.

According to the complaint, the true facts, which were known by defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company lacked requisite internal controls, and, as a result, the Company's projections and reported results issued during the Class Period were based upon defective assumptions about the Company's marketing budget and deferred revenue; and (b) the Company knew that its revenues were driven almost entirely by the number of procedures performed in its vision centers during the first quarter of the each year and that the Company's existing stores (in operation for over 12 months) were not showing growth and any overall growth was being derived from new store openings. As a result, the Company's projections issued during the Class Period about its forecasted 2007 EPS were at a minimum reckless.

Plaintiff seeks to recover damages on behalf of all purchasers of LCA common stock during the Class Period (the "Class"). The plaintiff is represented by Coughlin Stoia, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Coughlin Stoia, a 180-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Coughlin Stoia lawyers have been responsible for more than $45 billion in aggregate recoveries. The Coughlin Stoia Web site (http://www.csgrr.com) has more information about the firm.