Milberg Weiss Expands Class Period for Class Action Suit Filed against AaiPharma, Inc. and Certain Officers and Directors on Behalf of Investors.Business Editors/Legal Writers NEW YORK--(BUSINESS WIRE)--March 3, 2004 The law firm of Milberg Weiss Founded in 1965 by attorneys Larry Milberg and Melvyn I. Weiss, Milberg Weiss (formerly known as Milberg Weiss & Bershad LLP) is a U.S. plaintiffs' law firm. Based in New York City, it is widely known for representing investors in securities class actions. Bershad Hynes & Lerach LLP LLP - Lower Layer Protocol announces that a class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax was filed on March 3, 2004, on behalf of purchasers of the securities of AaiPharma, Inc. ("AaiPharma" or the "Company") (NasdaqNM: AAII AAII See: American Association of Individual Investors ) between April 24, 2002 and February 27, 2004, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss' website at www.milberg.com The complaint charges aaiPharma, Philip S. Tabbiner, and William L. Ginna, Jr. with violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. thereunder. Throughout the Class Period, defendants issued quarter after quarter of "record" financial results. Defendants emphasized increased revenues throughout the Class Period, fueled by strong sales of pharmaceutical products including sales of Brethine, an asthma medication. Defendants failed to disclose that these stellar financial results were only made possible through improper sales practices, such as "channel stuffing Channel Stuffing A deceptive business practice used by a company to inflate its sales and earnings figures by deliberately sending retailers along its distribution channel more products than they are able to sell to the public. " or flooding wholesalers with products in order to artificially boost sales, and failing to properly reserve for product returns in violation of Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). As a result, defendants' Class Period financial statements were materially overstated o·ver·state tr.v. o·ver·stat·ed, o·ver·stat·ing, o·ver·states To state in exaggerated terms. See Synonyms at exaggerate. o . On February 5, 2004, before the market opened, defendants shocked the market by announcing that due to excessive product returns of products such as Brethine, and necessary additions to product return reserves, fourth quarter net revenues were reduced by $15.9 million. In response to the news concerning AaiPharma's previously undisclosed inventory issues, the price of AaiPharma stock dropped from over $27 per share on February 4, 2004 to $21.30 on February 5, 2004, a drop of over 23% on unusually large trading volumes of 4.8 million shares traded. On March 1, 2004, defendants admitted that an internal investigation had been commenced due to "sales abnormalities in the Company's Brethine(R) and Darvoct(tm) product lines during the second half of 2003." The Company further revealed that the results of this investigation could have a "material" impact on financial results for the first quarter and all of fiscal 2004. In response to this news, AaiPharma stock plunged an additional 36% on abnormally high trading volumes. If you bought the securities of AaiPharma between April 24, 2002 and February 27, 2004, and sustained damages, you may, no later than April 13, 2004, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called 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 Milberg Weiss Bershad Hynes & Lerach LLP, or other counsel of your choice, to serve as your counsel in this action. Milberg Weiss Bershad Hynes & Lerach LLP (http://www.milberg.com) is a 190-lawyer firm with offices in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , San Diego, San Francisco, Los Angeles, Boca Raton, Philadelphia and Seattle, and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others, and has been responsible for more than $20 billion in aggregate recoveries. Please contact the Milberg Weiss website for more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys: Steven G. Schulman One Pennsylvania Plaza, 49th fl. New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY, 10119-0165 Phone number: (800) 320-5081 Email: aaipharma@milberg.com Or Maya Saxena 5355 Town Center Road Suite 900 Boca Raton, FL 33486 Phone number: (561) 361-5000 Email: msaxena@milberg.com Website: http://www.milberg.com |
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