MILWAUKEE, August 6, 2003 (PRIMEZONE) -- The Law Firm of Ademi & O'Reilly, LLP announced that on July 1, 2003 it commenced a class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of InterMune Inc. ("InterMune") (Nasdaq:ITMN) securities during the period between October 24, 2002 and June 11, 2003 (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.ademilaw.com/cases/InterMune.pdf.
If you wish to serve as lead plaintiff, you must move the Court by August 25, 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, Guri Ademi at 1-866-264-3995 or via e-mail at gademi@ademilaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.ademilaw.com/cases/InterMune/php. 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 InterMune and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that defendants made false and misleading statements about one of the Company's leading products, Actimmune. Specifically the complaint alleges that defendants were aware that: (a) InterMune's estimated number of patients on Actimmune, disclosed throughout the Class Period as an accurate and valid means by which to register the level of strength of the demand for Actimmune, was "inherently" unreliable, inconsistent, and lacking in any accountable basis for presentation; (b) there had been disruptions and problems with InterMune's sales and marketing efforts, including extraordinary turnover and lack of proper training; (c) since at least the fourth quarter of fiscal 2002, InterMune was materially understating the level of inventory being held by its distributors, of which millions of dollars worth was being held in excess, and materially overstating its revenues; (d) InterMune lacked adequate and sufficient internal controls and systems; and (e) based on the foregoing, InterMune had no reasonable basis to issue its financial and operational projections.
On June 11, 2003, the Company announced that it was cutting its 2003 revenue guidance figures and slashing projected earnings from Actimmune. The Company also announced it had overstated the number of patients using Actimmune and that, contrary to its earlier representations, demand for Actimmune from physicians was flat. These disclosures sent the Company's stock price plummeting to $16.74, a 33% one-day fall.