NEW YORK, Dec. 8, 2003 (PRIMEZONE) -- The Law Firm of Wechsler Harwood LLP announced today that a class action lawsuit has been filed on behalf of purchasers of Biovail Corp. ("Biovail" or the "Company") (NYSE:BVF) common stock between May 17, 2002 to October 29, 2003, inclusive (the "Class Period").
The action, entitled Gokhale v. Biovail Corp., et al., 03-cv-9701 (GBD), is pending in the United States District Court for the Southern District of New York against Biovail, Eugene N. Melnyk, Rolf K. Reininghaus and Brian H. Crombie. A copy of the complaint is available from the Court or can be viewed on the firm's website at www.whesq.com.
The complaint charges Biovail and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Complaint alleges that Biovail consistently reported "record" growth, quarter after quarter throughout the Class Period, and Defendants issued positive earnings and income growth forecasts of 30% throughout that time. However, Biovail used hundreds of millions of dollars in proceeds from the sale of previously issued stock to make acquisitions and thereby created the illusion of increasing revenue and demand for Biovail products. This purchased "growth" also allowed certain Defendants, including Defendant Melnyk, to obtain more than $40 million in performance-based stock grants and options, which were directly related to the apparent growth and success of Biovail.
On October 30, 2003, Biovail shocked the market by announcing revised guidance for 2004 and its financial results for the third quarter of 2003, which were substantially below prior guidance (net income down 83% for the quarter and with revenue growth of 10% versus prior guidance of more than 30%). Defendants issued a series of releases which revealed rising expenses which far outpaced any prior guidance or plan and lower revenues which far underperformed plan. Immediately following this disclosure, Biovail's shares plummeted, 20% or $5.38 per share, from the prior day's high, in the single day's trading session to a new 52 week trading low.
If you purchased or otherwise acquired Biovail securities during the Class Period, you may, no later than January 12, 2004, move to be appointed as a lead plaintiff in this class action. 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 Wechsler Harwood or other counsel of your choice to serve as your counsel in this action.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders and has recovered hundreds of millions of dollars in those efforts. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. 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:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400
Craig Lowther, Wechsler Harwood Shareholder Relations Department: clowther@whesq.com (Ext. 257)
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca