Murray, Frank & Sailer LLP is investigating a class action lawsuit on behalf of all securities purchasers of Express Scripts, Inc. (Nasdaq: ESRX) ("Express Scripts" or the "Company") from October 29, 2003 through August 3, 2004 inclusive (the "Class Period").
Express Scripts is an independent pharmacy benefit manager ("PBM") that provides integrated pharmacy benefit management services, including network pharmacy claims processing, mail pharmacy services, benefit design consultation, drug utilization review and formulary management.
The investigation concerns whether Express Scripts and certain of its officers violated the Securities Exchange Act of 1934. More specifically, Murray, Frank & Sailer LLP is investigating whether the Company failed to disclose and misrepresented the following material adverse facts which were known to the Company and its officers or recklessly disregarded by them: (1) that the Company artificially inflated the cost of generic drugs; (2) that the Company diverted to itself millions of dollars worth of rebates that belonged to its participating customers; (3) that the Company induced, through fraud and deception, physicians to switch patients from one prescribed drug to another for which the Company received money from the drug's manufacturer; (4) that the aforementioned deceitful practices were in violation of Generally Accepted Accounting Principles ("GAAP"); (5)that the Company lacked adequate internal controls; and (6) that as result of the foregoing, the Company's financial results were materially inflated at all relevant times.
On July 28, 2004, Express Scripts announced second quarter net income of $65.4 million. In addition to discussing its fourth quarter financial results, the Company announced that the Company received a Notice of Proposed Litigation from the Office of the Attorney General of the State of New York. News of this shocked the market. Shares of Express Scripts fell $6.49 per share or 9.03 percent, on July 29, 2004, to close at $65.36 per share. On August 4, 2004, New York Attorney General's office announced that it filed a lawsuit against Express Scripts for conducting elaborate schemes that inflated by millions of dollars the costs of prescription drugs to New York State's largest employee health plan, the Empire Plan. On this news, shares of Express Scripts fell an additional $1.37 per share or 2.15 percent, on August 4, 2004, to close at $62.48 per share.
If you would like information, please contact Eric J. Belfi at 1-800-497-8076 or at [email protected].