PHILADELPHIA, Oct. 6, 2004 (PRIMEZONE) -- Law Offices Bernard M. Gross, P.C. (http://www.bernardmgross.com) announces that class action lawsuits, were commenced against:
-- Merck & Co., Inc., in the United States District Court for the
Eastern District of Pennsylvania, on behalf of all persons who
purchased Merck common stock (NYSE:MRK), between November 5,
2003 and September 29, 2004;
-- Fannie Mae, United States District Court in the District of
Columbia, on behalf of all persons who purchased Fannie Mae
securities (NYSE:FNM) between October 11, 2000 and September 22,
2004; and
-- StonePath Group, Inc. in the United States District Court in the
Eastern District of Pennsylvania, on behalf of all persons who
purchased StonePath Group, Inc. Securities (NYSE:STG) between
May 7, 2003 and September 20, 2004.
The Merck Complaint alleges that defendants failed to disclose material information during the Class Period concerning the safety profile of its arthritis drug Vioxx, and that a growing body of evidence demonstrated that patients who used the drug for more than 18 months were exposed to an increased risk of heart attack. On September 30, 2004, the Company announced that it was immediately withdrawing Vioxx from world markets after a data safety monitoring board, overseeing a long-term study of the drug, recommended that the study be halted because of an increased risk of serious cardiovascular events among members of the study group. The Company's sudden decision to withdraw Vioxx was in stark contrast to its prior public announcements during the Class Period touting the safety of Vioxx and other public disclosures by the Company and its representatives that specifically refuted criticism of the drug lodged by respected clinicians.
The Fannie Mae Complaint alleges that defendants' failed to disclose the following adverse information that was known to them or was recklessly disregarded by them: 1) that FNM applied accounting methods and practices that did not comply with Generally Accepted Accounting Principles ("GAAP") in accounting for the enterprise's derivatives transactions and hedging activities; 2) that FNM had materially understated its accrued cost-of-access liability by $50-$80 million; 3) that FNM used "cookie jar" accounting wherein it arbitrarily distributed current gains to subsequent quarters in a bid to keep its revenue and earning growth steady; 4) that FNM deferred expenses to achieve bonus compensation targets; 5) that FNM had insufficient and inadequate internal controls; and 6) that as a result, the value of the Company's net income and financial results was materially misstated at all relevant times. On September 22, 2004, Fannie Mae, prior to the opening of the market, announced that the OFHEO examination concluded that FNM had used improper methods to manage its earnings.
The StonePath Complaint alleges that the defendants failed to disclose and misrepresented that STG had understated its accrued purchased transportation liability and related costs of purchased transportation rendering the Company's financial statements materially false and misleading because they understated the Company's liabilities and expenses, and overstated the Company's net income and earning before income, taxes, depreciation , and amortization ("EBITDA"). As a result of the above, the Company's reported financial results were in violation of GAAP. On September 20, 2004, the Company announced its intention to restate its fiscal year 2003 and first and second quarter 2004 financial statements.
If you wish to discuss these actions or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Deborah R. Gross or Susan R. Gross of Law Offices Bernard M. Gross at 866-561-3600(toll-free) or via e-mail at susang@bernardmgross.com. You can view a copy of the Merck, Fannie Mae and StonePath Group complaints as filed at http://www.bernardmgross.com. Your involvement in the lawsuits is important to the proosecution of these actions. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you purchased or otherwise acquired the securities of:
Company Symbol Class Period Lead Plaintiff
due date
Fannie Mae FNM-NYSE 10/11/00 -- 9/22/04 11/22/04
StonePath Group, Inc. STG-NYSE 5/7/03 -- 9/20/04 11/23/04
Merck & Co., Inc. MRK-NYSE 11/5/03 -- 9/29/04 11/30/04
PLEASE CONTACT: Law Offices Bernard M. Gross, P.C.
Susan R. Gross, Esq.
Deborah R. Gross, Esq.
1515 Locust Street, Suite 200
Philadelphia, PA 19102
Telephone: 866-561-3600 (toll free)
or 215-561-3600
E-mail: susang@bernardmgross.com or
debbie@bernardmgross.com.
Website: http://www.bernardmgross.com
Law Offices Bernard M. Gross, P.C. has significant experience and expertise in prosecuting class actions. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions. Recently, the firm served as co-lead counsel in an antitrust case on behalf of purchasers of automotive refinishing paints and recovered $66.75 million for the class.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca