MINNEAPOLIS, May 13, 2003 (PRIMEZONE) -- The Law Firm of Lockridge Grindal Nauen P.L.L.P. has filed a lawsuit in the United States District Court for the Western District of Tennessee, Memphis Division, located at 167 North Main Street, Memphis, TN 38103, on behalf of purchasers of Accredo Health, Inc. ("Accredo" or the "Company") (Nasdaq:ACDO) publicly traded securities during the period between June 16, 2002 and April 7, 2003, inclusive (the "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. As a result, the Company's reported financial results were artificially inflated throughout the Class Period; (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 and were therefore materially false and misleading; (c) that the Company would not have been able to meet its stated earnings guidance had it properly reserved for its accounts receivables; and (d) based on (a)-(c), defendants' earnings guidance and positive statements concerning the Company was lacking in a reasonable and therefore materially false and misleading.
On April 8, 2002, 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. In response to this announcement, the price of Accredo Health common stock declined precipitously falling from $25.40 per share to as low as $13.76 per share, on extremely heavy volume. During the Class Period, Accredo insiders sold more than $12 million worth of their personally-held Accredo stock while in possession of the true facts about the Company.
Plaintiffs are represented by the law firm of Lockridge Grindal Nauen P.L.L.P. The firm has considerable experience in prosecuting securities class actions, has extensive experience representing shareholders in class actions, and has successfully recovered billions of dollars for defrauded investors and shareholders. The reputation and expertise of the firm in shareholder and other class action litigation have been repeatedly recognized by courts, which have appointed the firm to major positions in complex multi-district and consolidated litigations. Lockridge Grindal Nauen P.L.L.P. has offices in Minneapolis and Washington, D.C.
If you bought Accredo publicly traded securities between June 16, 2002 and April 7, 2003, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than June 9, 2003. Any member of the purported class may move the Court to serve as lead plaintiff through Lockridge Grindal Nauen or other counsel of their choice, or may choose to do nothing and remain an absent class member.
If you have questions or information regarding this action, or if you are interested in serving as a lead plaintiff in this action, you may call or write:
Karen M. Hanson, Esq. Lockridge Grindal Nauen P.L.L.P. 100 Washington Avenue South Suite 2200 Minneapolis, MN 55401 (612) 339-6900 kmhanson@locklaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca