RADNOR, Pa., July 26 LAWFUEL – Law Press Release Service– The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the
United States District Court for the District of New Jersey on behalf of
all securities purchasers of Par Pharmaceutical Companies, Inc. (NYSE: PRX)(“Par” or the “Company”) from April 29, 2004 through July 5, 2006,
inclusive (the “Class Period”).
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 Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at [email protected]
The Complaint charges Par and certain of its officers and directors
with violations of the Securities Exchange Act of 1934. More specifically,
the Complaint alleges that the Company failed to disclose and
misrepresented the following material adverse facts which were known to
defendants or recklessly disregarded by them: (1) that the Company
materially overstated its financial results by at least $55 million; (2)
specifically, that the Company delayed recognition of customer credits and
uncollectible customer deductions, which resulted in an understatement of
accounts receivable revenues; (3) that the Company failed to take timely
write-downs of the Company’s inventory, which caused the Company to
overstate the worth of its inventory by at least $15 million; (4) that the
Company lacked adequate internal controls; (5) that the Company’s financial
statements were presented in violation of Generally Accepted Accounting
Principles; and (6) that, as a result of the above, the Company’s financial
statements were materially false and misleading at all relevant times.
On July 5, 2006, after the market closed, Par announced that the
Company had discovered certain accounting errors and consequently would
restate sales and income figures for fiscal years 2004, 2005, and the first
quarter of 2006. Specifically, the Company stated that an internal review
of its trade accounts receivable balances revealed accounting errors that
would result in the restatement of financial results for fiscal years 2004
and 2005 and the first quarter of 2006. The Company also reported that it
expected that the effect of the restatement adjustments to its accounts
receivable would be to reduce revenues by an amount up to $55 million over
the applicable periods, prior to any potential recoveries. In addition, Par
announced that it would write-off inventory in an amount up to $15 million.
On this news, shares of Par plummeted $4.78, or 26.2 percent, to close, on
July 6, 2006, at $13.47 per share, on heavy trading volume.
Subsequently, on July 24, 2006, the Company filed a current report with
the SEC on Form 8-K. Therein, the defendants disclosed that the SEC had
commenced an informal probe into the Company’s restatement.
Plaintiff seeks to recover damages on behalf of class members and is
represented by the law firm of Schiffrin & Barroway, which prosecutes class
actions in both state and federal courts throughout the country. Schiffrin
& Barroway is a driving force behind corporate governance reform, and has
recovered billions of dollars on behalf of institutional and individual
investors from the United States and around the world. For more information
about Schiffrin & Barroway, or to sign up to participate in this action
online, please visit http://www.sbclasslaw.com.
If you are a member of the class described above, you may, not later
than September 15, 2006, move the Court to serve as lead plaintiff of the
class, if you so choose. 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. You may retain
Schiffrin & Barroway, or other counsel of your choice, to serve as your
counsel in this action.
CONTACT: Schiffrin & Barroway, LLP
Darren J. Check, Esq.
Richard A. Maniskas, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll-free) or 1-610-667-7706
Or by e-mail at [email protected]