CHICAGO, April 21, 2003 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that a class action lawsuit is pending in the United States District Court for the Western District of Tennessee on behalf of purchasers of the securities of Accredo Health, Inc. (Nasdaq:ACDO) ("Accredo" or the "Company") between June 16, 2002 and April 7, 2003, inclusive ("Class Period").
It has been alleged that Accredo, David D. Stevens, its Chief Executive Officer and Chairman of the Board, and Joel R. Kimbrough, its Chief Financial Officer, violated the federal securities laws by issuing a series of materially false and misleading statements to the market, which had the effect of artificially inflating the market price of Accredo's securities.
The Complaint alleges that these statements were materially false and misleading because they failed to disclose and misrepresented the following adverse facts, among others: (a) that Accredo was failing to timely record an impairment in the value of certain receivables that it recently acquired, resulting in the Company reporting artificially inflated financial results throughout the Class Period; (b) that Accredo's published financial statements during the Class Period were not prepared in accordance with Generally Accepted Accounting Principles and were therefore materially false and misleading; and (c) that the Company would not have been able to meet its stated earnings guidance had it properly reserved for its accounts receivables. Based on the above, the earnings guidance and positive statements concerning Accredo were lacking in a reasonable basis and were therefore materially false and misleading.
On April 8, 2003, before the market opened, Accredo announced that it was reducing its previously issued earnings guidance and that it was examining the adequacy of reserves for accounts receivables it recently acquired. In response to this announcement, the price of Accredo common stock plunged over 43% in one day to close at $14.29, after having closed at $25.40 the previous day. Allegedly, during the Class Period, Accredo insiders sold more than $12 million worth of their Accredo stock while in possession of the facts about the Company.
Much Shelist is currently investigating these claims. If you wish to discuss your rights and interests, or if you have information relevant to the lawsuit, you may contact Carol V. Gilden or Michael E. Moskovitz at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to Accredo. If you purchased Accredo securities during the Class Period and if you meet certain other legal requirements, you may file a motion in the court where the lawsuit has been filed to serve as a lead plaintiff. You must file your motion no later than June 9, 2003.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca