BALA CYNWYD, Pa., March 6, 2002 (PRIMEZONE) -- Shareholders of PDI, Inc. ("PDI" or the "Company") (Nasdaq:PDII) who desire to serve as a lead plaintiff in a shareholder class action lawsuit now pending in federal court in New Jersey must submit an application with the Court by March 15, 2002 according to the law firm of Schiffrin & Barroway, LLP.
The lawsuit seeks damages for violations of the federal securities laws on behalf of all investors who purchased PDI, Inc. securities between May 22, 2001 and November 12, 2001 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of PDI, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our Website at www.sbclasslaw.com.
The complaint alleges that the New Jersey-based PDI, Inc., on May 22, 2001, 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. That statement was, according to the complaint, 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 purchased PDI, Inc. securities between May 22, 2001 and November 12, 2001, you may be a member of the class and have until March 15, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca