PHILADELPHIA, March 4 2005 – LAWFUEL – The Law News Network — Barrack, Rodos & Bacine today issued
the following:
A class action has been commenced in the United States District Court for
the District of New Jersey on behalf of purchasers of the publicly traded
securities of Bradley Pharmaceuticals, Inc. (NYSE: BDY) (“Bradley
Pharmaceuticals” or the “Company”), between October 8, 2003 and February 25,
2005 inclusive (the “Class Period”).
The complaint charges Bradley Pharmaceuticals, Daniel Glassman and R.
Brent Lenczycki with violations of Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint
alleges that the defendants failed to disclose and misrepresented the
following material adverse facts: (1) that the Company was materially
overstating its financial results by engaging in improper accounting
practices; (2) that the Company’s future sales growth from its Keralac(TM)
franchise would be hindered by generic competition; and (3) as a result of the
foregoing misrepresentations and omissions, there was no reasonable basis for
the Company’s revenue and earnings guidance.
On February 28, 2005, the Company issued a press release announcing that
the staff of the Securities and Exchange Commission is conducting an informal
inquiry to determine whether the Company had violated the federal securities
laws. The SEC’s staff has requested that the Company provide it with
information and documents concerning the Company’s revenue recognition
practices and issues related to the capitalization of certain payments. The
Company also announced that, in light of the SEC’s inquiry, it will not be
releasing its 2004 earnings results as anticipated. On this news, the price of
Bradley Pharmaceutical’s stock dropped to $9.75 per share from a closing price
of $13.25 on the previous trading day, a decline of 30%, on unusually high
trading volume.
The complaint seeks to recover damages on behalf of all persons who
purchased Bradley Pharmaceuticals securities during the Class Period.
Barrack, Rodos & Bacine has extensive experience in prosecuting investor class
actions involving financial fraud. Barrack, Rodos & Bacine has prosecuted
securities, antitrust and consumer class actions for more than 25 years. The
firm has offices in Philadelphia, San Diego, New York and New Jersey and has
been designated lead counsel by federal and state courts across the country in
large, complex cases. For more information about Barrack, Rodos & Bacine,
please visit their website at http://www.barrack.com.
If you are a member of the Class described above, you may, no later than
May 2, 2005, move the Court to serve as lead plaintiff of the Class, if you so
choose. In order 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 case or your rights or interests, please contact Leslie
Bornstein Molder, Esquire, Barrack, Rodos & Bacine, 3300 Two Commerce Square,
2001 Market Street, Philadelphia, PA 19103, lmolder@barrack.com, 215-963-0600,
fax number 215-963-0838.
Web Site: http://www.barrack.com
