BALA CYNWYD, Pa., April 3, 2003 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of Florida, Miami Division on behalf of all purchasers of the common stock of Andrx Corporation ("Andrx" or the "Company") (Nasdaq:ADRX) from October 31, 2002 through March 4, 2003, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The Complaint charges that Defendants Andrx, Richard J. Lane, and Angelo C. Malahias 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 during the Class Period, thereby artificially inflating the price of Andrx securities. Specifically, the Complaint alleges that throughout the Class Period, Defendants issued positive statements about the Company's ability to obtain the approval of the Food and Drug Administration ("FDA") for Andrx's generic version of Wellbutrin SR ("Wellbutrin"), an antidepressant drug. However, Andrx failed to disclose that its version of the drug had a limited expiration date, so that if the drug was not marketed by year end 2002, or soon thereafter, the Company would be forced to write off the value of its Wellbutrin inventory or at least establish a significant reserve for it.
On March 5, 2003, Andrx shocked the market by announcing that it would record a $26.3 million charge in its fourth quarter 2002 results, related primarily to the Company's inventories of its generic version of Wellbutrin. According to CEO Richard Lane, the Company established this reserve because the expiration dating of the generic versions of these products had become an issue with the FDA. Additionally, in a March 5, 2003 conference call, Andrx's Chief Financial Officer Angelo C. Malahias told analysts that the Company was not going to disclose the dating on the inventory. In response to the shocking news, the Company's stock price dropped 31% from $11.51 on March 4, 2003, to $7.89 at the close on March 5, 2003, on heavy trading volume
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than May 12, 2003, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca