NEW YORK, May 19, 2004 (PRIMEZONE) -- The Law Firm of Geller Rudman, PLLC announced today that a class action lawsuit has been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of NDCHealth Corporation ("NDC" or the "Company") (NYSE:NDC) publicly traded securities during the period between October 1, 2003 and March 31, 2004, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.geller-rudman.com/view_case.asp?cID=278.
The complaint alleges that NDC, Walter M. Hoff, and Randolph L. M. Hutto 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 October 1, 2003 and March 31, 2004, thereby artificially inflating the price of NDC's common stock. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company was materially inflating its financial results by prematurely recognizing revenue in its physician business unit; (2) that the Company's practice of improperly recognizing revenue was in violation of Generally Accepted Accounting Principles ("GAAP"); and (3) that as a result, the Company's financial results were materially inflated at all relevant times.
On April 1, 2004, the Company issued a press release with the headline: "NDCHealth Delays Fiscal Third Quarter Results." Therein, the Company stated that it would delay release of its 2004 fiscal third quarter financial results and the conference call previously scheduled for April 1 and April 2, 2004, respectively. According to the Company, this decision was prompted by the company's initiation of a review concerning practices and procedures relating to the timing of revenue recognition of sales to the value-added reseller channel in its physician business unit.
News of this shocked the market. Shares of NDC's stock price dropped nearly 20% to close at $22.70 on unusually large trading volumes of nearly 4.8 million shares.
If you bought NDCHealth publicly traded securities between October 1, 2003 and March 31, 2004, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than June 21, 2004. If you are a member of this class, you can join this class action online at http://www.geller-rudman.com. Any member of the purported class may move the Court to serve as lead plaintiff through Geller Rudman or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Geller Rudman, PLLC is a national law firm that represents investors and consumers in class action and corporate governance litigation. It is one of the country's premier firms in the area of securities fraud, with in-house finance and forensic accounting specialists and extensive trial experience. Since its founding, Geller Rudman, PLLC has grown to become one of the most respected and successful firms representing investors and consumers in class action litigation. The firm came of age under the client focused realities of the Private Securities Litigation Reform Act of 1995, which provided new opportunities for institutional investors to assume leadership in combating securities fraud.
The firm's lawyers have achieved substantial recoveries for aggrieved investors and consumers in class action lawsuits prosecuted in state and federal courts throughout the nation. Geller Rudman, PLLC maintains a widely recognized reputation for excellence, as courts have repeatedly appointed the firm to major positions in intricate multi-district or consolidated litigations. In this regard, Geller Rudman, PLLC has successfully pursued hundreds of class action lawsuits, has taken a lead role in numerous complex litigations on behalf of defrauded investors and consumers and has been responsible for billions in recoveries as well as landmark corporate governance changes. The firm maintains offices in Boca Raton and New York.
If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.geller-rudman.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca