NEW YORK, April 10, 2003 (PRIMEZONE) -- A class action lawsuit has been filed in the United States District Court for the Eastern District of Tennessee, Northeastern Division at Greeneville, on behalf of purchasers of King Pharmaceuticals (NYSE:KG) publicly traded securities during the period between February 16, 2000 and March 10, 2003, inclusive (the "Class Period"). A copy of the complaint is available from the Court or can be viewed on the Wechsler Harwood web site at: www.whesq.com.
The Complaint alleges that defendants violated sections 10(b) and 20(a) of the Securities & Exchange Act of 1934 by issuing materially false and misleading statements during the Class Period and violated sections 11 and 15 of the Securities Act of 1933 by issuing a materially false and misleading Registration Statement and Prospectus in connection with the Company's acquisition of Jones Pharma, Inc. The Complaint also alleges that defendants issued statements regarding the Company's financial performance and future prospects and the strong demand for its branded pharmaceutical products, notably Altace and Levoxyl. Additionally, the Company failed to disclose that certain of its rebate and pricing practices subjected it to heightened governmental scrutiny. As alleged in the Complaint, these statements were each materially false and misleading when made as they misrepresented and/or omitted the following adverse facts which then existed and disclosure of which was necessary to make the statements made not false and/or misleading, including: (a) that the Company's rebate practices and "best price" lists subjected it to heightened regulatory scrutiny as governmental agencies increased their activity in this area; (b) that the Company had understated the level of generic competition for Levoxyl; and (c) that the Company had engaged in questionable sales to VitaRx and Prison Health Services during 1999 and 2000.
On March 11, 2003, King Pharmaceuticals was subject to an SEC investigation for, among other things: (i) the sales of its products to VitaRx and Prison Health Services during 1999 and 2000; (ii) its "bestprice" lists; (iii) all documents related to the pricing of its pharmaceutical products to any governmental Medicaid agency during 1999; and (iv) the accrual and payment of rebates on Altace from 2000 to the present. In response to this announcement, the price of King Pharmaceuticals common stock declined precipitously, falling from $15.90 per share to $12.17 per share.
If you are a member of the class described above, you may, not later than May 12, 2003, 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. Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400
Ramon Pinon, Wechsler Harwood rpinon@whesq.com extension 283.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca