NEW YORK, April 17, 2003 (PRIMEZONE) -- Abbey Gardy, LLP commenced a Class Action lawsuit in the United States District Court for the Western District of Tennessee, against Accredo Health, Inc. ("Accredo Health" or the "Company"), (Nasdaq:ACDO). The suit was filed on behalf of purchasers of the common stock of Accredo Health, Inc. between June 16, 2002 and April 7, 2003, inclusive ("Class Period").
The Complaint alleges 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 material misrepresentations to the market between June 16, 2002 and April 7, 2003, thereby artificially inflating the price of Accredo common stock. The Complaint alleges that these statements were materially false and misleading because they failed to disclose and misrepresented the following adverse facts, among others: (a) that the Company was failing to timely record an impairment in the value of certain receivables that it had acquired in a recent acquisition; (b) as a result of the foregoing, the Company's financial statements published during the Class Period were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"). During the Class Period, Accredo insiders sold more than $12 million worth of their Accredo stock while in possession of the true facts about the Company.
On April 8, 2003, prior to the opening of the market, Accredo shocked the market by announcing that it was reducing its previously issued earning guidance and that it was examining the adequacy of reserves for accounts receivables that it acquired in a recent acquisition. On this news, the price of Accredo common stock down over 43%, to close at $14.29, down from $25.40.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Accredo securities during the Class Period. If you purchased or otherwise acquired Accredo securities during the Class Period, and either lost money on the transaction or still hold the securities, You may wish to join in the action to serve as a Lead Plaintiff. If you purchased Accredo securities during the Class Period, You may, no later than June 9, 2003 request that the Court appoint you as a 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 a 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 plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Nancy Kaboolian, Esq. of Abbey Gardy, LLP. at (800) 889-3701 or (212) 889-3700 email Nkaboolian@abbeygardy.com.
More information on this and other class actions can be found on theClass Action Newsline at www.primezone.com/ca