LITTLE ROCK, Ark., March 11, 2002 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announces that the correct final date for moving to be appointed lead plaintiff in the class action against PDI, Inc. ("PDI" or the "Company") (Nasdaq:PDII) and certain of its officers is March 25, 2002, and not March 15, 2002 as previously announced.
Cauley Geller Bowman & Coates, LLP filed a complaint in the United States District Court for the District of New Jersey seeking damages on behalf of all investors who purchased PDI publicly traded securities during the period between May 22, 2001 and November 12, 2001, inclusive (the "Class Period"). The first notice to the class was published in Investor's Business Daily on January 22, 2002 with an incorrect filing deadline for lead plaintiff motions. 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.classlawyer.com/pr/pdi.pdf.
The complaint charges PDI and certain of its officers and directors with issuing a series of material misrepresentations to the market during the Class Period, thereby artificially inflating the price of PDI publicly traded securities. 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. According to the complaint, that statement was 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 fourth quarter 2001 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 PDI publicly traded securities between May 22, 2001 and November 12, 2001, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than March 25, 2002. If you are a member of this class, you can join this class action online at http://www.classlawyer.com/sign_up.html. Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller Bowman & Coates, LLP or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents investors throughout the nation. 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.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Investor Relations Department: Jackie Addison, Sue Null or Shelly Nicholson P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca