COLCHESTER, Conn., Nov. 14 /PRNewswire/ -- The Law Firm of Scott + Scott, LLC (nrothstein@aol.com)announces that a class action lawsuit that the firm drafted has been filed in the United States District Court for the Central District of California on behalf of purchasers of Watson Pharmaceuticals, Inc. (NYSE: WPI - News; “Watson” or the “Company”) common stock during the period between November 2, 1999 and November 13, 2001, inclusive (the “Class Period”). A copy of the complaint filed in this action is available from the Court. A copy of this case will be posted on the firm’s website in the near future.
The complaint alleges that Watson and certain of its officers and directors violated U.S. securities laws (Sections 10(b) and 20(a) of the Securities and Exchange Act of 1934, and Rule 10b-5 promulgated thereunder), by issuing materially false and misleading statements. These alleged false statements include:
(a) that Watson was materially overstating its financial results by failing to write down the value of its inventories and the value of certain of the Company’s assets; (b) that Watson was experiencing significantly increased competition for generic drugs and was also experiencing manufacturing difficulties; and (c) that defendants’ positive statements about the Company were lacking in a reasonable basis at all times and were therefore materially false and misleading.
Defendants used millions of shares of Watson common stock to acquire other businesses before these facts were disclosed to the investing public.
On November 13, 2001, Watson disclosed its financial results for the third quarter 2001 which were well below expectations. Additionally, the Company announced that it was writing off almost all of its investment in Dilacor XR and that the Company was writing off over $20 million in additional impaired inventory. In response the price of Watson common stock plummeted, trading down almost $20 per share, to close trading at $28.54 per share, compared to the prior day’s close of $47.15 per share, on volume of over 15.3 million shares traded -- almost 20 times the average trading volume for Watson shares.
If you bought Watson common stock between November 2, 1999 and November 13, 2001, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than January 12, 2004. If you are a member of this class, you can join this class by calling Scott + Scott, LLC at (800) 404-7770 or you can e-mail attorney Neil Rothstein at nrothstein@aol.com (or call 619- 251-0887). Any member of the purported class may move the Court to serve as lead plaintiff through Scott + Scott, LLC or other counsel of its choice. Scott + Scott, LLC drafted this first filed complaint.
Scott + Scott, LLC is engaged in the representation of funds, foundations, endowments, institutions, pension funds, individuals, and other entities throughout the world in securities, antitrust and other complex class and non-class action litigation. The firm maintains the highest standards for client satisfaction and communication. The firm’s attorneys litigate in both state and federal courts throughout the nation. The firm has been appointed lead counsel in cases nationwide, including the ongoing ImClone Securities Litigation. It currently also serves as co-lead counsel in such matters as the Northwestern Energy Litigation and the lead counsel 360 Networks Securities Litigation. The firm also recently settled cases against Mattel and Emulex in which it was lead counsel. Scott + Scott, LLC issues this release in accordance with the applicable federal securities laws. If you wish to discuss this action, have any questions concerning this notice, your rights with respect to this matter or any other securities fraud matter please contact Neil Rothstein Esq., nrothstein@aol.com, or David Scott Esq., drscott@scott- scott.com, Scott + Scott, LLC, 108 Norwich Avenue, Colchester, Connecticut 06415 at 800/404-7770 (fax: 860/537-4432).
Scott + Scott, LLC
CONTACT: Neil Rothstein Esq., nrothstein@aol.com, or David Scott Esq.,drscott@scott-scott.com, of Scott + Scott, LLC, +1-800-404-7770
