NEW YORK, Feb. 6, 2002 (PRIMEZONE) -- The law firm of Milberg Weiss Bershad Hynes & Lerach LLP announces that a class action lawsuit was filed on January 25, 2002, on behalf of purchasers of the securities of PDI Inc. ("PDI" or the "Company") (Nasdaq:PDII) between May 22, 2001 and November 12, 2001 inclusive (the "Class Period'). A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss' website at: http://www.milberg.com/pdi/
The action is pending in the United States District Court for the District of New Jersey, located at the Martin Luther King Jr. Federal Courthouse, 50 Walnut St. Rm. 4015, Newark NJ 07102, against defendants PDI, Charles C. Saldarini (CEO and Co-Chairman) and Bernard C. Boyle (CFO).
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between May 22, 2001 and November 12, 2001. For example, as alleged in the complaint, on May 22, 2001 the Company held a conference call regarding a previously announced agreement with Novartis AG, under which PDI would market and sell Novartis' Lotensin and Lotrel, two hypertension medications. During the conference call, defendants represented that they expect the Novartis contract to add $0.25 per share to PDI's fourth quarter of 2001 results. That statement was, according to the complaint, materially false and misleading because defendants knew, or were reckless in not knowing, that PDI's marketing program would not be fully underway until well into the fourth quarter and that therefore, the agreement could not contribute materially to PDI's fourth quarter of 2001 performance. In addition, according to the complaint, PDI materially misled the investing public to the true impact that the introduction of generic competition for Ceftin-- a drug which the Company was distributing under contract with GlaxoSmithKline PLC ("Glaxo")-- would have on its business. In particular, the Complaint alleges that defendants represented, in an August 23, 2001 conference call, that PDI expected Ceftin to contribute $0.30-$0.40 earnings per share to the fourth quarter of 2001, even if a generic form of Ceftin was introduced during that time. According to the complaint, the statements were materially false and misleading because defendants knew, or were reckless in not knowing, that Ceftin could not contribute $0.30 per share to earnings. On November 12, 2001, the Company issued a press release announcing a net loss of $17.3 million, or $1.24 for the third quarter of 2001, including a $24 million charge as reserves for expenses associated with the Ceftin contract, which the Company announced would be terminated shortly. In addition, the Company announced that the Lotensin program will be completed late in the fourth quarter and would not contribute materially to PDI's 2001 earnings. On November 13, 2001, defendants held a conference call revealing that Ceftin would not contribute any profit to the fourth quarter of 2001. In reaction to the news, the price of PDI common stock plummeted from a $29 per share close on November 12, 2001 to close at $18.35 per share -- a drop of 35%.
If you bought the securities of PDI between May 22, 2001 and November 12, 2001, you may, no later than March 15, 2002, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss Bershad Hynes & Lerach LLP, or other counsel of your choice, to serve as your counsel in this action.
Milberg Weiss Bershad Hynes & Lerach LLP (http://www.milberg.com) is a 170-lawyer firm with offices in New York City, San Diego, San Francisco, Los Angeles, Boca Raton, Philadelphia and Seattle, and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others, and has been responsible for more than $20 billion in aggregate recoveries. Please contact the Milberg Weiss website for more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys:
Steven G. Schulman or Samuel H. Rudman One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 Phone number: (800) 320-5081 Email: pdicase@milbergNY.com Website: http://www.milberg.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca