COLCHESTER, Conn., March 24, 2005 (PRIMEZONE) -- Scott + Scott, LLC filed on behalf of client/shareholders a class action for securities fraud violations in the U.S. District Court for the District of New Jersey on March 8, 2005. This firm is also litigating cases such as Merck, Royal Dutch/Shell, Commerce Bancorp and others in this jurisdiction. Furthermore, Scott + Scott recently settled a large pharmaceutical securities case against ImClone for $75 million dollars. The Securities and Exchange Commission (SEC) is conducting an investigation into Bradley Pharmaceuticals (NYSE:BDY). The case is on behalf of those who purchased securities in Bradley between October 8, 2003 and February 25, 2005 (the "Class Period"). On March 22, 2005, Bradley Pharmaceuticals, Inc. (the "Company") entered into a Forbearance Agreement with the lenders that are party to its $125 million credit facility under which Wachovia Bank, National Association, serves as administrative agent. Under the Forbearance Agreement, the lenders agreed to forbear from exercising, for a period of 30 days, their remedies under certain provisions of the credit facility as a result of the Company's failure to file its Annual Report on Form 10-K and furnish audited financial statements for 2004.
Effective March 16, 2005, Michael Bernstein resigned as a member of the Company's board of directors, which resignation it stated is not due to any disagreement with the Company. There is also a temporary suspension of trading under registrant's employee benefit plans. On March 17, 2005, the Company sent a notice to its directors and executive officers informing them of a temporary suspension of certain transactions by such persons involving the Company's equity securities as a result of the required imposition of a blackout period under the Company's 401(k) Savings Plan.
If you wish to serve as lead plaintiff or merely be a client/shareholder with Scott + Scott you must do so by May, 2 2005. If you would like to discuss this case or your rights, please call 800-404-7770 (EST) or 800-332-2259 (PST) or e-mail attorney Neil Rothstein at nrothstein@scott-scott.com . Mr. Rothstein can also be reached at 619-251-0887. The complaint charges Bradley Pharmaceuticals and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Bradley Pharmaceuticals is a specialty pharmaceutical company that acquires, develops and markets prescription and over-the-counter products in select markets.
The complaint alleges that from October 8, 2003 and February 25, 2005, defendants issued materially false and misleading statements regarding the Company's financial performance and future business prospects. As alleged in the complaint, these statements were materially false and misleading because they failed to disclose and misrepresented various negative facts that were known to defendants, or recklessly disregarded by them, at all relevant times. These alleged facts include that the Company was materially overstating its financial results by engaging in improper accounting practices. The Company's future sales growth from its Keralac franchise would be hindered by generic competition, and that as a result, there was no reasonable basis for the Company's revenue and earnings guidance.
On February 28, 2005, the Company issued a press release announcing that the staff of the Securities and Exchange Commission (SEC) is conducting an informal inquiry to determine whether there have been violations of the federal securities laws by the Company. In connection with the inquiry, the SEC staff has requested that the Company provide it with certain information and documents concerning issues related to revenue recognition and capitalization of certain payments. In light of the ongoing SEC staff inquiry and separate counsel's review, the Company also announced that it would be delaying the release of its 2004 earnings. Market reaction to the above was swift. On February 28, 2005, Bradley stock fell almost 30% per share.
Scott + Scott, LLC is a firm that devotes most of its practice to securities, antitrust and employment benefits litigation. The firm is nationally recognized with offices in Colchester, Connecticut; San Diego, California; and Chagrin Falls, Ohio. For more information about the lawsuit or this press release, please e-mail nrothstein@scott-scott.com. You can dial direct in California at 619-233-4565 or toll-free as stated above. Scott + Scott dedicates itself to client communication and satisfaction. It represents individuals, foundations, corporations and others nationwide in securities, antitrust and employee litigation. Take the time to find out more about the firm, its practice, your case and other cases. If you wish to discuss this action with an attorney or have any questions concerning this notice, your rights or any matter within our expertise, please contact attorney Neil Rothstein as stated above or by cell: 619-251-0887. Scott + Scott, LLC is located at 108 Norwich Avenue, Colchester, CT 06415; phone: 860-537-3818; fax: 860-537-4432. This release is issued in accordance with the applicable U.S. federal law.
Information about other recent filings, investigations or settlements at Scott + Scott:
Scott + Scott, LLC has been retained, filed, investigated or settled the following securities cases involving pharmaceutical companies: Forest Laboratories (NYSE:FRX); GlaxoSmithKline (NYSE:GSK) as it was reported that the stock was downgraded due to the Food and Drug Administration's (FDA) seizure of the drugs Avansement and Paxil. The Company is reported to have failed to respond to a warning by the FDA regarding violations of manufacturing standards. One research firm stated that the Company could sustain losses of $1.1 billion in sales if the products are kept from the market as well as difficulty in getting its new products approved. Other pharmaceutical cases we are presently working on include: Biogen Idec (Nasdaq:BIIB), AstraZeneca (NYSE:AZN); (Merck (NYSE:MRK), Pfizer (NYSE:PFE), Pharmacia and the firm recently settled the ImClone Securities Litigation case for $75 million dollars.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.