BALA CYNWYD, Pa., April 8, 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 Western District of Tennessee on behalf of all purchasers of the common stock of Accredo Health, Inc. ("Accredo" or the "Company") (Nasdaq:ACDO) from June 16, 2002 through April 7, 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 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 June 16, 2002 and April 7, 2003, thereby artificially inflating the price of Accredo common stock.
The Complaint alleges that these statements were materially false and misleading because they failed to disclose and misrepresented the following adverse facts, among others: (a) that the Company was failing to timely record an impairment in the value of certain receivables that it had acquired in a recent acquisition. As a result, the Company's reported financial results were artificially inflated throughout the Class Period; (b) as a result of the foregoing, the Company's financial statements published during the Class Period were not prepared in accordance with Generally Accepted Accounting Principles and were therefore materially false and misleading; (c) that the Company would not have been able to meet its stated earnings guidance had it properly reserved for its accounts receivables; and (d) based on (a)-(c), defendants' earnings guidance and positive statements concerning the Company was lacking in a reasonable and therefore materially false and misleading.
On April 8, 2002, prior to the opening of the market, Accredo shocked the market by announcing that it was reducing its previously issued earning guidance and that it was examining the adequacy of reserves for accounts receivables that it acquired in a recent acquisition. In response to this announcement, the price of Accredo Health common stock declined precipitously falling from $25.40 per share to as low as $13.76 per share, on extremely heavy volume. During the Class Period, Accredo insiders sold more than $12 million worth of their personally-held Accredo stock while in possession of the true facts about the Company.
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 June 9, 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