GAINESVILLE, Ga., March 18, 2002 (PRIMEZONE) -- In an effort to recoup their losses, shareholders are pursuing a class action against Elan Corporation, PLC (NYSE:ELN) that claims the company used improper accounting to artificially boost its revenues, Berman DeValerio Pease Tabacco Burt & Pucillo said today.
The lawsuit, which was filed February 8, 2002 in the U.S. District Court for the Northern District of Georgia, seeks damages for violations of federal securities laws on behalf of all investors who bought Elan American Depository Receipts (ADRs) from April 23, 2001 through January 29, 2002 (the Class Period).
Berman DeValerio has represented investors in class actions for 20 years. To review the complaint and learn more about becoming a lead plaintiff, visit the firm's Website at www.bermanesq.com.
The complaint charges Elan, an Irish pharmaceutical company, and three top officers with issuing false and misleading statements to the investing public. These news releases and financial statements, contrary to what the company said, failed to comply with Generally Accepted Accounting Principles (GAAP).
Specifically, the lawsuit accuses Elan of using more than 50 sham joint ventures to keep research-and-development costs off its books, pump up earnings and artificially inflate its stock price. According to the complaint, Elan actually funded these purported joint ventures itself then signed licensing deals that, in effect, paid itself money that it then booked as revenue. In addition, Elan listed its "investments" in the joint ventures as balance-sheet assets, the complaint says.
News of Elan's accounting practices sent its stock reeling. After The Wall Street Journal published an article exposing the ploys on January 30, 2002, the price of Elan's ADRs fell 16%, from $35.20 the previous day to $29.95. When the company announced a few days later that its earnings for the fourth quarter of 2001 would drop 84%, its ADRs fell a whopping $15.10 per share - a 50% decline in a single day of trading. On February 7, 2002, Elan revealed that the U.S. Securities and Exchange Commission was investigating the company.
If you purchased Elan ADRs during the period April 23, 2001 through January 29, 2002, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests:
Chauncey D. Steele IV, Esq. One Liberty Square Boston, MA 02109 (800) 516-9926 law@bermanesq.com
You may also visit the firm's Website at www.bermanesq.com.
If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than April 5, 2002. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. To be a member of the class, however, you need not take any action at this time, and you may retain counsel of your own choice. If you decide to seek appointment as lead plaintiff, you may also retain counsel of your choice.
Berman DeValerio Pease Tabacco Burt & Pucillo (www.bermanesq.com) prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations and consumer fraud. The firm consists of 32 attorneys in Boston, San Francisco and West Palm Beach, Florida.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca