| Company: | NDCHealth Corporation |
| Ticker Symbol: | NYSE: NDC |
| Class Period: | October 1, 2003 and March 31, 2004 |
| Court: | |
| Date Filed: | Apr-07-04 |
| Lead Plaintiff Deadline: | Jun-07-04 |
| Allegations: |
A class action lawsuit was filed on April 7, 2004, on behalf of purchasers of the securities of NDCHealth Corporation ("NDC" or the "Company") (NYSE: NDC) between October 1, 2003 and March 31, 2004, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act").
The complaint charges NDC, Walter M. Hoff and Randolph L.M. Hutto with violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Throughout the Class Period, defendants issued quarter after quarter of strong financial results. Defendants failed to disclose that these stellar financial results were only made possible through improper revenue recognition practices in violation of Generally Accepted Accounting Principles ("GAAP"). On April 1, 2004, before the market opened, defendants shocked the market by announcing that NDC would delay it will delay the release of its fiscal third-quarter financial results as it "reviews some aspects of how it records revenue." The Company said the review relates to the timing of sales recognition in its value-added reseller channel in NDC's physician business unit.
In response to the news concerning NDC's previously undisclosed accounting issues, the price of NDC stock dropped nearly 20% to close at $22.70 on unusually large trading volumes of nearly 4.8 million shares traded - - far greater than NDC's average daily trading volume of about 298,000 shares.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint charges NDC, Walter M. Hoff and Randolph L.M. Hutto with violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Throughout the Class Period, defendants issued quarter after quarter of strong financial results. Defendants failed to disclose that these stellar financial results were only made possible through improper revenue recognition practices in violation of Generally Accepted Accounting Principles ("GAAP"). On April 1, 2004, before the market opened, defendants shocked the market by announcing that NDC would delay it will delay the release of its fiscal third-quarter financial results as it "reviews some aspects of how it records revenue." The Company said the review relates to the timing of sales recognition in its value-added reseller channel in NDC's physician business unit.
In response to the news concerning NDC's previously undisclosed accounting issues, the price of NDC stock dropped nearly 20% to close at $22.70 on unusually large trading volumes of nearly 4.8 million shares traded - - far greater than NDC's average daily trading volume of about 298,000 shares.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
