ATLANTA, May 1, 2003 (PRIMEZONE) -- Chitwood & Harley, LLP, which previously filed a class action lawsuit in the United States District Court for the Eastern District of Tennessee, Northern Division at Greenville on behalf of purchasers of securities of King Pharmaceuticals, Inc., ("King Pharmaceutical" or the "Company") (NYSE:KG) reminds KG purchasers that the deadline to file lead plaintiff papers is May 12, 2003. Chitwood & Harley's original complaint is brought on behalf of purchasers of KG securities between February 16, 2000 and March 10, 2003. However, the firm is currently investigating expanding the class period to April 26, 1999 through March 10, 2003 (the "Class Period"). A copy of a complaint in the action is available on our website, www.classlaw.com.
The suit is brought against King Pharmaceuticals and John Gregory, James Gregory, and James Lattanzi. There are certain legal requirements to serve as lead plaintiff, which we would be happy to discuss with you. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to remain an absent class member. If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact Lauren Antonino or Jennifer Morris at 1-888-873-3999 (toll-free) or by e-mail at jlm@classlaw.com. You may also contact us through our website at www.classlaw.com by clicking on King Pharmaceuticals.
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 regarding the Company's financial performance and future prospects and the allegedly strong demand for its branded pharmaceutical products, notably Altace and Levoxyl. Moreover, the Complaint alleges that 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 because 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: (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 shocked the market when it revealed that it 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.
Chitwood & Harley LLP is a class action firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States and has been instrumental in recovering billions of dollars on behalf of its clients. Clients and courts alike have praised the results achieved by Chitwood & Harley. Recently, the federal judge in In re BankAmerica Securities Litigation, which resulted in the highest recovery last year in a securities class action, commented favorably on counsel's performance stating: "Class members were well served by experienced attorneys who, through considerable time and effort, obtained a significant recovery for their clients," and, "(a)s the Court has remarked throughout this litigation, class counsel ... have performed at exceptionally high levels, and all parties have been exceedingly well represented."
For more information about Chitwood & Harley, please visit our website at www.classlaw.com or contact Jennifer Morris at 1-888-873-3999 (toll-free), by e-mail at jlm@classlaw.com or at 1230 Peachtree Street, Suite 2300, Atlanta, Georgia 30309.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca