Accredo Health, Inc. is Sued by Chicago Law Firm Much Shelist for Securities Fraud; Lead Plaintiff Petitions Due June 9, 2003 -- ACDO


CHICAGO, May 8, 2003 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that it has sued Accredo Health, Inc. ("Accredo" or the "Company") (Nasdaq:ACDO) and certain of its officers and directors in the United States District Court for the Western District of Tennessee. The shareholder lawsuit is on behalf of all persons and entities who purchased Accredo securities during the period between June 16, 2002 and April 7, 2003, inclusive ("Class Period").

If you wish to discuss your rights and interests, have questions regarding this notice or have information relevant to the lawsuit, you may contact Carol V. Gilden or Michael E. Moskovitz at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to Accredo.

The Complaint alleges that Accredo, David D. Stevens, its Chief Executive Officer and Chairman of the Board, and Joel R. Kimbrough, its Chief Financial Officer, 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 materially false and misleading statements to the market during the Class Period. These alleged misstatements had the effect of artificially inflating the price of Accredo securities.

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 Accredo was failing to timely record an impairment in the value of certain receivables that it recently acquired, resulting in the Company reporting artificially inflated financial results throughout the Class Period; (b) that Accredo's published financial statements during the Class Period were not prepared in accordance with Generally Accepted Accounting Principles and were therefore materially false and misleading; and (c) that the Company would not have been able to meet its stated earnings guidance had it properly reserved for its accounts receivables. Based on the above, the earnings guidance and positive statements concerning Accredo were lacking in a reasonable basis and were therefore materially false and misleading.

On April 8, 2003, before the market opened, Accredo announced that it was reducing its previously issued earnings guidance and that it was examining the adequacy of reserves for accounts receivables it recently acquired. In response to this announcement, the price of Accredo common stock plunged over 43% in one day to close at $14.29, after having closed at $25.40 the previous day. Allegedly, during the Class Period, Accredo insiders sold more than $12 million worth of their Accredo stock while in possession of the facts about the Company.

On May 5, 2003 Accredo announced that it had dismissed Ernst & Young as its independent public accountant, and that it had brought a lawsuit against the firm seeking damages in excess of $53.3 million.

Plaintiff seeks to recover damages on behalf of all those who purchased Accredo securities during the Class Period (June 16, 2002 through April 7, 2003, inclusive). If you purchased Accredo securities during the Class Period and either lost money on the transactions or still hold the securities, you may, if you meet certain other legal requirements, file a motion in the court where the lawsuit has been filed to serve as a lead plaintiff. You must file your motion no later than June 9, 2003.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. 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 serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).

Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.

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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