NEW YORK, Nov. 17, 2003 (PRIMEZONE) -- A class action lawsuit has been filed in the United States District Court for the Northern District of California, civil action number C-03-4999, on behalf of all persons or entities who purchased or otherwise acquired Gilead Sciences, Inc. ("Gilead" or the "Company") securities (Nasdaq:GILD) during the class period: July 14, 2003 and October 28, 2003, inclusive. The Complaint names Gilead Sciences, Inc., John C. Martin, John F. Milligan, Mark L. Perry, Norbert W. Bischofberger, Anthony Carraciolo, and William A. Lee as defendants.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J. Belfi or Aaron D. Patton: by mail, Rabin, Murray & Frank LLP, 275 Madison Avenue, New York, NY 10016; by telephone, (800) 497-8076 or (212) 682-1818; by facsimile, (212) 982-1892; or, by email, info@rabinlaw.com.
The Complaint alleges that Gilead and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated by the SEC. The Complaint further alleges that, in a scheme to allow Gilead insiders to sell their Gilead stock at artificially inflated prices, the defendants falsely represented that the strength of its sales of Viread (Gilead's HIV drug), during the second quarter of 2003. Defendants maintained that the strong sales numbers were due to an increase in prescriptions and not, as some analysts had cautioned, due to inventory build-up by distributors stocking up ahead of a price increase.
Such statements were materially false and misleading because, as defendants knew or recklessly disregarded, a material portion of the second quarter Viread sales were attributable to distributors stocking up ahead of a price increase. Gilead insiders sold a total of 303,981 shares in August 2003, reaping gross proceeds of $19,365,998, due to the artificially inflated prices. Gilead announced on October 28, 2003 that sales of Viread in the third quarter of 2003 would be materially less than expected because distributors would meet end-user demand for Viread by selling off overstock they accumulated in the second quarter. After the announcement and in reaction to it, the price of Gilead common stock plummeted, falling $7.46 in one day, from a close of $59.46 per share on October 28, 2003 to $52 per share on October 29, 2003.
Plaintiff is represented by the law firm of Rabin, Murray & Frank LLP. Rabin, Murray & Frank LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired the securities of Gilead Corp., between July 14, 2003 and October 28, 2003, and sustained damages, you may, no later than January 12, 2004, request that the Court appoint you as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. Contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Rabin, Murray & Frank LLP to discuss this action, this announcement, or your rights or interests.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca