| Company: | Par Pharmaceutical Companies, Inc. |
| Ticker Symbol: | NYSE:PRX |
| Class Period: | April 29, 2004 to July 5, 2006 |
| Date Filed: | Jul-17-06 |
| Lead Plaintiff Deadline: | Sep-15-06 |
| Court: | District, NJ |
| Allegations: |
A securities fraud class action lawsuit has been filed in the United States District Court for the District of New Jersey, against Par Pharmaceutical Companies, Inc. ("Par" or the "Company") (NYSE:PRX) and certain of its officers, on behalf of purchasers of the common stock of the Company during the period from April 29, 2004 to July 5, 2006, inclusive (the "Class Period"). The complaint alleges violations of Sections 10(b) and 20(a) the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Par, headquartered in New Jersey, develops, manufactures and markets more than 110 generic drugs and innovative branded pharmaceuticals for specialty markets. The Complaint alleges that throughout the class period, defendants reported earnings that were materially inflated as a result of accounting errors including an understatement of accounts receivable reserves. The Company has now admitted that the overstatement of its revenues has resulted in Par overpaying its business partners in various profit sharing arrangements. As a result of the Company's internal review of its trade accounts receivable balances, the Company has decided to restate its previously reported financial statements for fiscal year 2004 and 2005 and the first quarter of 2006. In addition, Par announced it will write-off inventory in an amount up to $15 million due to flawed physical inventory procedures. In response to these revelations, on July 6, 2006, Par stock fell $4.78 per share, losing nearly 26% of its value in one day on extremely high volume of over 9 million shares traded, to close at $13.47 per share.
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.
Par, headquartered in New Jersey, develops, manufactures and markets more than 110 generic drugs and innovative branded pharmaceuticals for specialty markets. The Complaint alleges that throughout the class period, defendants reported earnings that were materially inflated as a result of accounting errors including an understatement of accounts receivable reserves. The Company has now admitted that the overstatement of its revenues has resulted in Par overpaying its business partners in various profit sharing arrangements. As a result of the Company's internal review of its trade accounts receivable balances, the Company has decided to restate its previously reported financial statements for fiscal year 2004 and 2005 and the first quarter of 2006. In addition, Par announced it will write-off inventory in an amount up to $15 million due to flawed physical inventory procedures. In response to these revelations, on July 6, 2006, Par stock fell $4.78 per share, losing nearly 26% of its value in one day on extremely high volume of over 9 million shares traded, to close at $13.47 per share.
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.
