RADNOR, Pa., Feb. 13 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of Kentucky on behalf of all securities purchasers of Omnicare, Inc. ("Omnicare" or the "Company") from August 3, 2005 and January 27, 2006 inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges Omnicare and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Omnicare, together with its subsidiaries, provide pharmaceutical care for the elder people primarily in the United States and Canada. The complaint alleges that Defendants' issued a series of false and misleading statements to the market artificially inflating the Company's stock. More specifically, the Defendants failed to disclose the following materially adverse facts to the market: (1) that Defendants materially inflated Omnicare's financial results by improperly substituting the pills it supplies to its nursing home patients to treat three common ailments. Specifically, that the Company improperly substituted two 7.5-milligram Buspirone anti-anxiety tablets for one 15-milligram tablet, Fluoxetine anti-depression tablets for capsules and Ranitidine heartburn capsules for tablets; (2) that the implementation of Medicare Part D had significantly increased the Company's costs and the number of rejected Medicare claims, which put a strain on the Company's business model; and (3) that the Company lacked the staff and the essential internal compliance controls necessary to capitalize on the new plan.
On January 30, 2006, Associated Press reported that on January 27, 2006 Michigan attorney general's office raided Omnicare's offices in Livonia and other cities. On this news, shares of Omnicare fell $6.09 per share, or 11.06 percent, on heavy trading volume, to close at $48.96 per share on January 30, 2006.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com
If you are a member of the class described above, you may, not later than April 3, 2006 move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin & Barroway, LLP Darren J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706 Or by e-mail at info@sbclasslaw.com
Schiffrin & Barroway, LLPCONTACT: Darren J. Check, Esq. or Richard A. Maniskas, Esq., Schiffrin &Barroway, LLP, +1-888-299-7706 (toll free) or +1-610-667-7706,info@sbclasslaw.com
Web site: http://www.sbclasslaw.com//
