NASHVILLE, Tenn., April 15, 2003 (PRIMEZONE) -- Barrett Johnston & Parsley today announced that a class action has been commenced in the United States District Court for the Western District of Tennessee on behalf of purchasers of Accredo Health, Inc. ("Accredo") (Nasdaq:ACDO) publicly traded securities during the period between June 16, 2002 and April 7, 2003 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from April 8, 2003. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Tim Miles of Barrett Johnston & Parsley at (615) 244-2202 or via e-mail at tmiles@barrettjohnston.com. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Accredo and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Accredo provides specialized contract pharmacy and related services pursuant to agreements with biotechnology drug manufacturers relating to the treatment of patients with certain costly, chronic diseases. The complaint charges that during the Class Period, defendants caused Accredo's shares to trade at artificially inflated levels through the issuance of false and misleading financial statements. The true facts, which were known by the defendants but actively concealed, were: (a) The Company's Q4 02 to Q2 03 results were grossly overstated. Prior to the Company's acquisition of the Specialty Pharmaceutical Services ("SPS") division of Gentiva Health Services, the Company was reserving 12% of gross patient receivables as an allowance for doubtful accounts. After completing due diligence of SPS in May/June 2002, defendants realized that if they revealed the truth about the consolidated receivables it would negatively impact the Company's receivables and net income; (b) The Company's hemophilia product line was not tracking with the Company's projections. This product line was very material to the Company as it represented 30% of the Company's gross revenue and was the Company's highest gross margin business line (35%-40% vs. consolidated margins of 20%); and (c) As a result of the above, the Company's fiscal 2003 revenue projections of $1.45 billion and EPS projections of $1.33-$1.38 were grossly inflated.
Plaintiff seeks to recover damages on behalf of all purchasers of Accredo publicly traded securities during the Class Period (the "Class"). The plaintiff is represented by Barrett Johnston & Parsley, who has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.