BALA CYNWYD, Pa., April 8, 2004 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of Missouri on behalf of all purchasers of the common stock of D&K Healthcare Resources, Inc. ("D&K Healthcare" or the "Company")(Nasdaq:DKHR) between April 23, 2001 and September 16, 2002, inclusive (the "Class Period"). Notice was originally published on February 14, 2004. As such, if you are a member of the class described above, you may, not later than April 14, 2004, move the Court to serve as lead plaintiff of the class, if you so choose.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges D&K Healthcare, J. Hord Armstrong, III, Martin D. Wilson, and Thomas S. Hilton with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that, throughout the Class Period, defendants issued numerous statements to the market concerning the Company's financial results, which failed to disclose and/or misrepresented the following adverse facts, among others: (1) that the Company's seemingly positive financial results were, in material part, based on its incentive-laden deals with Bristol which could not be sustained in the long-term; (2) given the terms of the incentive-laden deals with Bristol, the Company was subject to the heightened risk that Bristol would stop providing it with favorable purchasing opportunities; and (3) based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and their earnings projections throughout the class period.
On September 16, 2002, after the close of trading, D&K Healthcare shocked the market when it announced that it was reducing its "EPS guidance before one-time charges related to the implementation of SFAS 142 to approximately $0.13 -- $0.17, from $0.30 to $0.31." According to the Company, during the first two months of the fiscal 2003 first quarter, D&K's internal revenue and margin objectives for its national chain business were not achieved. The sales shortfall is principally the result of fewer than expected purchasing and sales opportunities available during the period. D&K's sales in the national chain business have been variable from month to month historically, driven largely by opportunistic purchases from pharmaceutical companies for distribution primarily to national chains.
In response to this announcement, on September 17, 2002, the price of D&K Healthcare common stock dropped more than 60% to close at $9.51 per share on unusually high trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com.
If you are a member of the class described above, you may, not later than April 14, 2004, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. You may retain Schiffrin & Barroway, LLP, or other counsel of your choice, to serve as your counsel in this action.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca