INVESTOR NOTICE: MURRAY, FRANK & SAILER LLP IS INVESTIGATING A POTENTIAL SHAREHOLDER CLASS ACTION AGAINST PAR PHARMACEUTICAL COMPANIES, INC. - PRX
New York, NY July 25, 2006 - Murray, Frank & Sailer LLP is investigating a potential class action on behalf of shareholders who purchased or otherwise acquired the securities of Par Pharmaceutical Companies, Inc. (“Par” or the “Company”) (NYSE: PRX) between April 29, 2004, and July 5, 2006, inclusive (the “Class Period”).
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The complaint would charge Par and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Par engages in the manufacture and distribution of generic and branded drugs in the United States.
The complaint would also allege that, throughout the Class Period, defendants issued materially false and misleading statements that misrepresented the following adverse facts: (i) that Par was materially overstating its financial performance by failing to properly reserve for customer credits and uncollectible accounts. Furthermore, we would seek to allege that during the Class Period, Par overstated its income by at least $55 million; (ii) that Par was failing to timely write-down the value of impaired inventory. During the Class Period, Par overstated the worth of its inventory by at least $15 million; and (iii) based on the foregoing, Par's Class Period financial statements were materially false and misleading and not prepared in accordance with Generally Accepted Accounting Principles ("GAAP").
The complaint would further allege that, on July 5, 2006, Par admitted that its previously issued financial results and financial statements materially overstated the Company's financial performance and that the Company's financial statements were not prepared in accordance with GAAP. On that date, Par issued a press release announcing that it would be restating its financial statements for fiscal years 2004, 2005 and the first quarter of 2006 to correct for "an understatement of accounts receivable reserves which resulted primarily from delays in recognizing customer credits and uncollectible customer deductions." The Company reported that the effect of the restatement over reported periods will be $55 million, that the Company would also write down $15 million in inventory and that its prior financial statements "should not be relied upon." In response to the announcement of the restatement, the price of Par stock dropped from $18.25 per share to $13.47 per share on extremely heavy trading volume.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Par securities on any world exchange between April 29, 2004, and July 5, 2006, and sustained damages, you may be eligible to be a plaintiff in the action. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Bradley P. Dyer of Murray, Frank & Sailer LLP.
Murray, Frank & Sailer LLP
Bradley P. Dyer
Fax: (212) 682-1892
Email: [email protected]