LOS ANGELES, July 19, 2004 (PRIMEZONE) -- A class action lawsuit was filed in the U.S. District Court for the Southern District of Ohio on behalf of purchasers (the "Class") of Cardinal Health, Inc.'s securities ("Cardinal" or the "Company") between October 24, 2000 and June 30, 2004, inclusive (the "Class Period"). Also included are all those who acquired Cardinal's shares through its acquisitions of Alaris Medical, Intercare, Medicap, Syncor, Boron Lepore, InGel, Ni-Med, SP Pharmaceuticals, or International Processing Corp. Present and former employees who purchased stock through Cardinal's Retirement Savings Plans are also included. Cardinal is traded on the New York Stock Exchange under the ticker symbol CAH (NYSE:CAH).
Defendants include Cardinal, Robert D. Walter, and Richard J. Miller. The Complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10-b(5).
The complaint alleges that during the Class Period, defendants failed to disclose: (I) that Cardinal manipulated various aspects of its accounting practices to continuously portray profitability to market; (ii) that Cardinal held inventory for an average of two months, and reaped exorbitant profits from price inflation; (iii) Cardinal improperly accounted for the $22 million recovered from Vitamin makers accused of overcharging Cardinal by booking such recoveries as revenue when the antitrust cases had not been resolved; and (iv) that Cardinal's pharmaceutical distribution business improperly classified revenues by reporting the revenues as either operating revenue or revenues from bulk deliveries to consumer warehouses when revenues were not derived from such.
On June 30, 2004, Cardinal announced expected earnings per share for fiscal 2004 which were below prior guidance. Separately, the company announced that on June 21, as part of the Securities and Exchange Commission's (SEC) formal investigation disclosed by the company on May 14, it received an SEC subpoena. On this news, Cardinal fell $17.19 per share or 24.54% on July 1, 2004 to close at $52.86 per share.
Plaintiff seeks to recover damages on behalf of the Class and is represented by the Braun Law Group whose attorneys have significant experience and expertise in prosecuting class actions and have played lead roles in major cases resulting in the recovery of millions of dollars to investors.
If you are a member of the Class described above, you may, no later than August 31, 2004, move the Court to serve as lead plaintiff, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
If you wish to discuss this action, or have any questions concerning this notice, or your rights with respect to this action, please contact the following: