Berger & Montague, P.C. Files Class Action on Behalf of Investors Against PSS World Medical, Inc. -- PSSI


PHILADELPHIA, Sept. 7, 2001 (PRIMEZONE) -- The law firm of Berger & Montague, P.C. (http://www.bergermontague.com) filed a class action suit on behalf of an investor against PSS World Medical, Inc. (the "Company") (Nasdaq:PSSI) and its two principal officers in the United States District Court for the Middle District of Florida on behalf of all persons or entities who purchased PSS World Medical common stock during the period from Oct. 26, 1999, through Sept. 1, 2000, inclusive (the "Class Period").

The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between Oct. 26, 1999, and Sept. 1, 2000, thereby artificially inflating the price of PSS World Medical securities. Throughout the Class Period, defendants issued multiple press releases and filed quarterly reports and an annual report with the Securities and Exchange Commission that materially overstated the Company's net income in violation of Generally Accepted Accounting Principles. On June 22, 2000, defendants issued a press release announcing its year end results and that the Company had entered into a definitive stock-for-stock merger agreement with Fisher Scientific International, Inc. ("Fisher"). The market reacted favorably to this announcement because of the value of the exchange ratio of Fisher's shares. One of the key terms of the merger, which was belatedly disclosed by the Company, was that the Company had to report EBITDA of not less than $23 million for the quarter in order for the merger to be consummated. In an Aug. 8, 2000 press release, defendants announced that they were in compliance with this provision of the merger agreement and that the merger was expected to proceed.

On Sept. 1, 2000, the Company issued a press release reporting that the merger agreement had been terminated. In response to this announcement, the market reevaluated the true value of PSS World Medical's shares, which had been buoyed by the potential exchange value of Fisher's stock during the Class Period, and, accordingly, shares of PSS World Medical's common stock, which had closed at $6-3/8 prior to announcement of the merger termination, closed at $4-13/16 on an inordinate volume of 5,730,200 shares upon dissemination of the news. As the sell-off continued, the price of the Company's stock settled into the range of approximately $2-3/4 - $3-3/4.

While Fisher had abandoned the merger because of the results of its own due diligence review of the Company's books and records, the public only became aware of the truth on June 27, 2001. On that date, PSS World Medical filed its Form 10-K for the fiscal year ended March 31, 2001 with the SEC and disclosed, for the first time, that the Company's internal controls over inventory, accounts payable, sales, and accounts receivable were, at all relevant times, materially deficient and that the Company had previously issued financial statements for the quarter ended June 30, 2000, which were materially misleading. As a result of these problems, the Company would be forced to restate its previous financial data, and would also cause the Company's EBITDA to be reduced, below the threshold that would have allowed the merger to be completed.

If you purchased PSS World Medical common stock during the period from Oct. 26, 1999 through Sept. 1, 2000, inclusive, you may, no later than Sept. 11, 2001, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class members(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in PSS World Medical common stock during the Class Period, please contact Berger & Montague, P.C. at investorprotect@bm.net for a more thorough explanation of the Lead Plaintiff selection process.

The law firm of Berger & Montague, P.C. has more than 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years, which have resulted in recoveries of several billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken, Medaphis Corporation and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:

"Class counsel did a remarkable job in representing the class interests." In Re: IKON Offices Solutions Securities Litigation. Civil Action No. 98-4286(E.D.Pa.) (partial settlement for $111 million approved May, 2000).

"...[Y]ou have acted the way lawyers at their best ought to act. And I have had a lot of cases...in 15 years now as a judge and I cannot recall a significant case where I felt people were better represented than they are here ... I would say this has been the best representation that I have seen." In Re: Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 7709 (N.D. Ill.) (settled in 1999 for $220 million).

If you purchased PSS World Medical common stock during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:


 Sherrie R. Savett, Esquire
 Stuart J. Guber, Esquire
 Kimberly A. Walker, Investor Relations Manager
 Berger & Montague, P.C.
 1622 Locust Street
 Philadelphia, PA 19103
 Phone: 888-891-2289 or 215-875-3000
 Fax: 215-875-5715
 Website: http://www.investorprotect.com
 e-mail: InvestorProtect@bm.net

More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.



            

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