MILWAUKEE, July 28, 2006 (PRIMEZONE) -- Ademi & O'Reilly, LLP (www.ademilaw.com) announced that it filed a class action lawsuit on behalf of purchasers of Par Pharmaceutical Companies Inc. ("Par" or the "Company") (NYSE:PRX) securities during the period between April 29, 2004, and July 5, 2006 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than September 15, 2006. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Guri Ademi at 866/264-3995 or via e-mail at gademi@ademilaw.com. You can view a copy of the complaint as filed or join this class action online at http://www.ademilaw.com. You may move the Court to serve as lead plaintiff through counsel of your choice, or you may choose to do nothing and remain an absent class member.
On July 24, 2006, Par disclosed that the SEC was conducting an informal investigation regarding its restatement of previous financial statements. According to the complaint, on July 5, 2006, Par admitted that its previously issued financial results and financial statements materially overstated the Company's financial performance and that the Company's financial statements were not prepared in accordance with GAAP. On that date, Par issued a press release announcing that it would be restating its financial statements for fiscal years 2004, 2005 and the first quarter of 2006 to correct for "an understatement of accounts receivable reserves which resulted primarily from delays in recognizing customer credits and uncollectible customer deductions." The Company reported that the effect of the restatement over reported periods will be $55 million, that the Company would also write down $15 million in inventory and that its prior financial statements "should not be relied upon." In response to the announcement of the restatement, the price of Par stock dropped from $18.25 per share to $13.47 per share on extremely heavy trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers of Par securities during the Class Period. The plaintiff is represented by Ademi & O'Reilly, LLP, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.