NEW YORK, July 12, 2004 (PRIMEZONE) -- Murray, Frank & Sailer LLP announces that a class action lawsuit has been filed in the United States District Court for the Southern District of Ohio on behalf of all persons who purchased the publicly traded securities of Cardinal Health, Inc. (NYSE:CAH) ("Cardinal" or "the Company") between October 24, 2000 and June 30, 2004, inclusive (the "Class Period"). Also included are all those who acquired Cardinal's shares through its acquisitions of Alaris Medical, Intercare, Medicap, Syncor, Boron Lepore, InGel, Ni-Med, SP Pharmaceuticals, or International Processing Corp. Present and former employees who purchased stock through Cardinal's Retirement Savings Plans are also included.
The Complaint alleges that Cardinal and certain of its officers and directors issued materially false statements concerning the Company's financial condition. Specifically, defendants failed to disclose: (i) that Cardinal manipulated various aspects of its accounting practices to continuously portray profitability to market; (ii) that Cardinal held inventory for an average of two months, and reaped exorbitant profits from price inflation; (iii) Cardinal improperly accounted for the $22 million recovered from Vitamin makers accused of overcharging Cardinal by booking such recoveries as revenue when the antitrust cases had not been resolved; and (iv) that Cardinal's pharmaceutical distribution business improperly classified revenues by reporting the revenues as either operating revenue or revenues from bulk deliveries to consumer warehouses when revenues were not derived from such.
On June 30, 2004, Cardinal announced expected earnings per share for fiscal 2004 which were below prior guidance. Separately, the company announced that on June 21, as part of the Securities and Exchange Commission's (SEC) formal investigation disclosed by the company on May 14, it received an SEC subpoena. On this news, Cardinal fell $17.19 per share or 24.54% on July 1, 2004 to close at $52.86 per share.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or acquired the common stock of Cardinal between October 24, 2000 and June 30, 2004, inclusive, and sustained damages, you may, no later than August 31, 2004, move the Court to serve as lead plaintiff of the class. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action online at http://www.murrayfrank.com//newcases_214.htm. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.