NEW YORK, March 14, 2003 (PRIMEZONE) -- Please take notice that the law firm of Kirby McInerney & Squire, LLP has commenced a class action lawsuit in the United States District Court for the Eastern District of Tennessee on behalf of all purchasers of King Pharmaceuticals, Inc. ("King Pharmaceuticals" or the "Company") (NYSE:KG) common stock during the period from April 26, 1999 to March 11, 2003 (the "Class Period").
A copy of the complaint is available from the Court at this time. Please visit our website at www.kmslaw.com, or contact us by phone at (888) 529-4787 or by email at emui@kmslaw.com for more information.
The action charges King Pharmaceuticals and certain of its senior officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The violations, as the complaint alleges, include issuance of materially false and misleading statements concerning the Company's business operations and earnings, which had the effect - during the Class Period - of artificially inflating the price of King Pharmaceuticals' shares.
The Company manufactures, markets and sells primarily branded prescription pharmaceutical products to general and family practitioners and internal medicine physicians and hospitals across the United States. As the complaint alleges, King Pharmaceuticals issued fraudulent and deceptive information regarding business forecasts, operations and earnings throughout the Class Period. In particular, King Pharmaceuticals misrepresented that the prices paid by governmental Medicaid agencies were the "best price" - i.e., the cheapest price offered to distributors and other purchasers - for a particular drug, resulting in government overpayment for the drugs. The complaint also alleges, among other things, that King Pharmaceuticals misstated and/or omitted facts regarding revenue subject to "pharmaceutical rebate" payments provided by the Company. On March 11, 2003, King Pharmaceuticals disclosed that it was under investigation by the SEC, and certain materials have been subpoenaed, including: the Company's "best price" lists, documents related to the pricing of the Company's pharmaceutical products to any governmental Medicaid agency during 1999, and documents regarding the accrual and payment of rebates on Altace, the Company's blood-pressure drug. Upon the revelation of governmental scrutiny, the price of King Pharmaceutical's stock dropped 23% in a single day. Financial results and predictions were, in fact, false and misleading throughout the Class Period, and investors accrued damages from King Pharmaceuticals' artificially inflated stock prices during this time.
Plaintiffs are represented by Kirby McInerney & Squire, LLP, which specializes in complex litigation, including securities class actions. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general, or about the role of the lead plaintiff in a securities class action can be obtained through Kirby McInerney & Squire's website at www.kmslaw.com.
If you are a member of the class described above, you may, no later than May 12, 2003, move the Court to serve as lead plaintiff of the class, if you so choose, pursuant to the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), 15 U.S.C. section 78u-4(a). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to seek appointment as a lead plaintiff. For more information about the case, its claims, and your rights, please contact:
Ira M. Press, Esq. Elaine Mui KIRBY McINERNEY & SQUIRE, LLP 830 Third Avenue, 10th Floor New York, New York 10022 Telephone: (212) 317-2300 or Toll Free (888) 529-4787 E-Mail: emui@kmslaw.com
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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Contract: KIRBY McINERNEY & SQUIRE, LLP
Ira M. Press, Esq.
Elaine Mui
(212) 317-2300 (888) 529-4787