ATLANTA, May 30, 2003 (PRIMEZONE) -- Chitwood & Harley, LLP, which previously filed a class action lawsuit in the United States District Court for the Western District of Tennessee, on behalf of purchasers of securities of Accredo Health, Inc. ("Accredo" or the "Company") (NASDAQ:ACDO), reminds Accredo purchasers that the deadline to file lead plaintiff papers is June 9, 2003. Chitwood & Harley's complaint is brought on behalf of purchasers of Accredo securities between June 16, 2002 and April 7, 2003. A copy of a complaint in the action is available on our website, www.classlaw.com. If you would like to discuss your rights in connection with this matter, please click on Accredo on our website, www.classlaw.com, where a copy of our complaint is available, or email Jennifer Morris at jlm@classlaw.com or call us at 1-888-873-3999 ext. 6883.
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; (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 ("GAAP"); (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 lacked a reasonable basis.
On April 8, 2003, 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. The market reacted swiftly to this news, pushing the price of Accredo Health common stock down over 43%, to close at $14.29, down from $25.40, 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.
There are certain legal requirements to serve as lead plaintiff, which we would be happy to discuss with you. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to remain an absent class member. If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact Lauren Antonino or Jennifer Morris at 1-888-873-3999 (toll-free) or by e-mail at jlm@classlaw.com. You may also contact us through our website at www.classlaw.com by clicking on Accredo Health.
Chitwood & Harley LLP is a class action firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States and has been instrumental in recovering billions of dollars on behalf of its clients. Clients and courts alike have praised the results achieved by Chitwood & Harley. Recently, the federal judge in In re BankAmerica Securities Litigation, which resulted in the highest recovery last year in a securities class action, commented favorably on counsel's performance stating: "Class members were well served by experienced attorneys who, through considerable time and effort, obtained a significant recovery for their clients," and, "(a)s the Court has remarked throughout this litigation, class counsel ... have performed at exceptionally high levels, and all parties have been exceedingly well represented."
For more information about Chitwood & Harley, please visit our website at www.classlaw.com or contact Jennifer Morris at 1-888-873-3999 (toll-free), by e-mail at jlm@classlaw.com or at 1230 Peachtree Street, Suite 2300, Atlanta, Georgia 30309.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca