LOS ANGELES, Aug. 10, 2004 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of a class (the "Class") consisting of all persons who purchased or otherwise acquired securities of Taro Pharmaceutical Industries, Ltd. ("Taro" or the "Company") (Nasdaq:TARO) between February 20, 2003 and July 29, 2004, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Taro and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims that defendants' omissions and material misrepresentations concerning Taro's operations artificially inflated the Company's stock price, inflicting damages on investors. The Complaint alleges Taro presented itself as a pharmaceutical company that develops, manufactures and markets generic drugs, and that the Company claimed throughout the Class Period that it had successfully expanded its product line to include proprietary drugs and novel drug delivery systems. Unbeknownst to investors, the Company suffered from undisclosed adverse factors that were having a negative impact on Taro's financial performance and condition including but not limited to the following: (a) defendants were unable to maintain profitability in Taro's generic drug division or generate free cash flow from the introduction of higher margin proprietary products sufficient to offset the expense of its new product launches; (b) defendants had failed to properly record the full expense of developing new proprietary drug products, such that it was materially false and misleading for defendants to state that the roll-out of Taro's new proprietary drugs was not and would not adversely affect the Company's near- or long-term profitability; (c) defendants understated the negative effects of increasing competition on the Company's financial performance; and (d) as a result of the foregoing, defendants lacked any reasonable basis to claim that Taro was operating according to plan or that Taro could maintain profitability in the near-term.
On July 29, 2004, the Company announced a second-quarter loss of $0.31 per share, far below the Company-guided analyst consensus estimate of $0.44 per share earnings, and that drug sales had dropped to $49.1 million from $74.8 million in the prior second quarter. On this news, Taro's share price fell more than $11.50 per share to a new multi-year low of $18.68 per share.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than October 4, 2004, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.