PHILADELPHIA, March 15, 2002 (PRIMEZONE) -- On February 6, 2002, the law firm of Berger & Montague, P.C. (http://www.bergermontague.com) filed a class action suit against Elan Corp., Plc ("Elan") (NYSE:ELN) and certain of its principal officers and directors in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased ELN American Depository Receipts ("ADRs") between April 23, 2001 and February 4, 2002, inclusive (the "Class Period").
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of l934. More specifically, the Complaint alleges that defendants issued materially false and misleading financial statements and failed to disclose material information during the Class Period, causing Elan's ADRs to trade at artificially inflated prices, thereby damaging investors who purchased them.
On January 30, 2002, The Wall Street Journal reported on Elan's manipulative accounting practices. The article detailed instances of Elan creating revenue out of thin air by establishing an Elan-controlled entity for research and development purposes, funding the entity through a multi-million dollar "investment" and then immediately taking back the "investment" in the form of a "licensing fee", which Elan then recorded as revenue. The Wall Street Journal quoted the SEC's former chief accountant, who described the practice as a "charade" akin to "taking money out of one pocket and putting it into another." On January 30, 2002, following the release of The Wall Street Journal report, Elan's ADR price fell nearly 17%.
On February 4, 2002, Elan announced its financial results for the year ended December 31, 2001. In its press release the Company disclosed, among other things, that "[i]n the light of current market concerns relating to off-balance sheet arrangements through QSPE (Qualified Special Purpose Entities) structures, Elan has two QSPEs which it has not consolidated in its financial results as presented under US generally accepted accounting principles." Following the release of Elan's announcement, the Company's ADRs lost over 50% of their remaining value, dropping to $14.84 from a close of $29.95 the previous trading day, on volume of over 54,000,000 shares.
If you purchased Elan securities during the period from April 23, 2001 through February 4, 2002, inclusive, you may, no later than April 5, 2002, 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 member(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 Elan securities 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 over 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 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 Elan securities 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
Douglas M. Risen, 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.bergermontague.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