CHATTANOOGA, Tenn., April 25, 2003 (PRIMEZONE) -- Shumacker Witt Gaither & Whitaker, P.C., a 50-lawyer firm based in Tennessee, announces that it has filed a class action lawsuit in the United States District Court for the Eastern District of Tennessee, Northern Division at Greeneville, on behalf of purchasers of securities of King Pharmaceuticals, Inc., ("King Pharmaceuticals" or the "Company") (NYSE:KG) between February 16, 2000 and March 10, 2003 (the "Class Period"). The firm is investigating an expanded class period which would include purchasers of KG securities from April 26, 1999 through March 10, 2003, inclusive. A copy of the Complaint is available from the Court or can be emailed to you upon request.
The suit was brought against King Pharmaceuticals and John Gregory, James Gregory, and James Lattanzi. The deadline to file lead plaintiff papers, for those class members wishing to serve in this capacity, is no later than May 12, 2003. There are certain legal requirements to serve as lead plaintiff, which we would be happy to discuss with you. 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 wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact Hugh Moore or Bill Colvin at (800) 665-8847 or (423) 425-7000 or by email at hmoore@swgwlaw.com or wcolvin@swgwlaw.com. You may also contact us through our website at www.swgwlaw.com.
The Complaint alleges that defendants violated sections 10(b) and 20(a) of the Securities & Exchange Act of 1934 by issuing materially false and misleading statements during the Class Period regarding the Company's financial performance and future prospects and the allegedly strong demand for its branded pharmaceutical products, notably Altace and Levoxyl. Moreover, the Complaint alleges that the Company failed to disclose that certain of its rebate and pricing practices subjected it to heightened governmental scrutiny. As alleged in the Complaint, these statements were each materially false and misleading when made because they misrepresented and/or omitted the following adverse facts which then existed and disclosure of which was necessary to make the statements made not false and/or misleading: (a) that the Company's rebate practices and "best price" lists subjected it to heightened regulatory scrutiny as governmental agencies increased their activity in this area; (b) that the Company had understated the level of generic competition for Levoxyl; and (c) that the Company had engaged in questionable sales to VitaRx and Prison Health Services during 1999 and 2000.
The Complaint further alleges that on March 11, 2003, King Pharmaceuticals shocked the market when it revealed that it was subject to an SEC investigation for, among other things: (i) the sales of its products to VitaRx and Prison Health Services during 1999 and 2000; (ii) its "best price" lists; (iii) all documents related to the pricing of its pharmaceutical products to any governmental Medicaid agency during 1999; and (iv) the accrual and payment of rebates on Altace from 2000 to the present. In response to this announcement, the price of King Pharmaceuticals common stock declined precipitously, falling from $15.90 per share to $12.17 per share.
Shumacker Witt Gaither & Whitaker, P.C. is a full service law firm of more than 50 attorneys, with a strong emphasis on litigation. Its attorneys have participated in class actions involving a state retirement system, workers compensation insurance premiums, and unfair trade practice claims involving pharmaceuticals. Members of the firm also have extensive experience in various capacities in Multi District litigation involving medical devices, various specific drugs, and most recently as a member of the Plaintiffs Steering Committee in the recently certified class action, In Re Tri State Crematory Litigation, MDL 1467. Regarding the firm's representation of a class of retired public school teachers in Smith v. Tennessee Consolidated Retirement System, No. 82-2030-III, Chancery Court (Davidson County, TN), the presiding judge called the results obtained "pretty much a grand slam." He added: "(A)nything short of the very best of legal representation simply would not have worked in this case.... (A)nything short of the very best product from a lawyer would not have produced this result."
For more information about Shumacker Witt Gaither & Whitaker, P.C., please visit our website at www.swgwlaw.com or contact Hugh Moore (hmoore@swgwlaw.com) or Bill Colvin (wcolvin@swgwlaw.com) by e-mail or by telephone at (800) 665-8847 or (423) 425-7000 or at 1100 SunTrust Bank Building, 736 Market Street, Chattanooga, TN 37402-4856.
Past success in litigation does not imply success in this matter. Each claim must be evaluated on its own merits. Not certified as civil trial specialists by the Tennessee Commission on Continuing Legal Education and Specialization.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca