NEW YORK, Feb. 4, 2002 (PRIMEZONE) -- The law firm of Kirby McInerney & Squire, LLP has commenced a class action lawsuit on behalf of all purchasers of Elan Corporation, PLC (NYSE:ELN) American Depository Receipts (ADRs) between January 2, 2001 and January 29, 2002 (the "Class Period"). The action charges Elan and certain of its officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The alleged violations, according to the complaint, flow from Elan's publication -- as detailed below -- of materially false and misleading financial results during the Class Period. The complaint alleges that, during the Class Period, Elan's misleading financial results caused the Company's ADRs to trade at artificially inflated prices, thereby damaging investors who purchased them.
A copy of the complaint is available from the Court in which it was filed, the United States District Court in the Southern District of New York, or from Kirby McInerney & Squire. Please visit our website at www.kmslaw.com, which offers summary and detailed information concerning the case, or contact us by phone at (888) 529-4787 or by email at mfleming@kmslaw.com.
On January 29, 2002, after the market closed, The Wall Street Journal issued a detailed expose about Elan's accounting practices. The report detailed instances of Elan creating revenue out of thin air by establishing an Elan-controlled entity for research and development purpose, funding the entity through a multi-million dollar "investment" and then immediately taking back the "investment" in the form of a "licensing fee", which Elan then recorded as revenue. The Wall Street Journal quoted the SEC's former chief accountant, who described the practice as a "charade" that is akin to "taking money out of one pocket and putting it into another." On January 30, 2002, following the release of the Wall Street Journal report, Elan's ADR price fell nearly 17% in a single day, to trade at $29.25 per ADR, some 34.7% below the $44.80 per ADR at which the ADRs had closed just days earlier, on January 17, 2002.
The lawsuit seeks to recover losses suffered by investors who purchased Elan ADRs during the class period, excluding the defendants and their affiliates. Plaintiff has retained as counsel the firm of Kirby, McInerney & Squire, LLP, which specializes in complex litigation, including securities class actions. Kirby, McInerney & Squire has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in published decisions. More information about the firm and its accomplishments can be viewed at www.kmslaw.com. The website also contains information about the claims against Elan, and about the securities class action process in general.
If you are a member of the class described above, you may, no later than April 5, 2002 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, as set out in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Class members need not, however, seek appointment as lead plaintiff in order to share in any recovery resulting from this litigation.
If you wish to discuss the claim, or have any questions concerning the matters set forth above, please contact:
Ira M. Press, Esq. Melissa Fleming KIRBY McINERNEY & SQUIRE, LLP 830 Third Avenue 10th Floor New York, New York 10022 Telephone: (212) 317-2300 or Toll Free (888) 529-4787 E-Mail: mfleming@kmslaw.com Website: www.kmslaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.