PHILADELPHIA, Aug. 19, 2002 (PRIMEZONE) -- The law firm of Spector, Roseman & Kodroff, P.C. announces that it filed a class action lawsuit in the United States District Court Southern District of Florida against defendants Andrx Corporation ("Andrx" or the "Company") (NYSE:ADRX), Elliot Hahn, Ph.D, Angelo C. Malahias and Alan P. Cohen, on behalf of purchasers of the stock of Andrx during the period from February 10, 2000 through August 12, 2002, inclusive (the "Class Period").
The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between February 10, 2000 and August 12, 2002, thereby artificially inflating the price of Andrx securities. The complaint alleges that the Company: (1) engaged in improper accounting practices which had the effect of materially overstating its reported earnings and understating its losses; (2) issued materially false and misleading financial statements not prepared in accordance with GAAP; and (3) lacked proper accounting controls and revenue recognition practices at its subsidiaries and which permitted its employees to commit accounting improprieties for a period of over three years.
On August 12, 2002, the Company announced that, as a result of its internal audit process, management has learned that an employee at one of its subsidiaries appears to have altered certain accounting records pertaining to accounts receivable balances and aging relating to its pharmaceutical and distribution operations, thereby potentially affecting Andrx's allowance for doubtful accounts. Based upon its investigation, it appears that the Company's previously announced net accounts receivable of $103.6 million as of June 30, 2002, may have been overstated by as much as $15 million relating to the period from January 1, 1999 to date. As a result of these accounting improprieties, Andrx would be required to restate earnings for prior years and/or account for these misstatements as a charge in the current period. In the aftermarket trading on the date of the announcement of the accounting irregularities, Andrx's stock declined by 16% or $3.57 per share, from $23.32 to $19.75.
If you purchased Andrx securities during the Class Period, you may, no later than October 14, 2002 move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in Andrx securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action, please visit http://www.srk-law.com/dbjoinaclassaction.asp. If you would like to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca