NEW YORK, June 28, 2001 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the District of Minnesota on behalf of all purchasers of Chronimed, Inc. ("Chronimed" or the "Company") (Nasdaq:CHMDE) common stock between October 27, 1999 and June 13, 2001, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's Website at www.faruqilaw.com
The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of false and misleading press releases concerning Chronimed's financial condition and business prospects. Specifically, the complaint alleges that the Company materially misrepresented Chronimed's financial results and performance for the Company's fiscal year 2000, ended June 30, 2000, and the first three-quarters of the Company's 2001 fiscal year. As a result, the price of the Company's common stock was artificially inflated throughout the Class Period. On June 14, 2001, however, Chronimed admitted that its reported revenue, accounts receivables and earnings "have been overstated" for seven quarters, that the overstatement is "material" and that the Company's financial statements therefore required a restatement. Immediately following this announcement, trading in the stock of Chronimed was halted on Nasdaq. On June 21, 2001, the Company disclosed the magnitude of the restatement, announcing that fiscal 2000 revenues and net income were each overstated by "not more than $3,000,000" -- wiping out virtually all of fiscal 2000's net income; and that the first three quarters of fiscal 2001 revenues and net income were each overstated by "not more than $4,000,000." When trading in Chronimed stock resumed on June 22, 2001, Chronimed's stock price plummeted by 49% to close at $4.75.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Chronimed securities between October 27, 1999 and June 13, 2001, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Class Action" section of our Website at www.faruqilaw.com
If you purchased Chronimed securities during the Class Period, you may, not later than August 14, 2001, 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. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail (Avozz@faruqilaw.com) www.faruqilaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca