Spector, Roseman & Kodroff, P.C. Announces Class Action Lawsuit Against Par Pharmaceutical Companies, Inc.

PHILADELPHIA -- The law firm of Spector, Roseman & Kodroff, P.C. announces that a securities class action lawsuit was commenced in the United States District Court for the Southern District of New York, on behalf of purchasers of the common stock of Par Pharmaceutical Companies, Inc. ("Par" or the "Company") (NYSE:PRX) between April 29, 2004 through July 5, 2006, inclusive (the "Class Period").

The Complaint alleges that defendants violated the federal securities laws by issuing materially false and misleading statements contained in press releases and filings with the Securities and Exchange Commission during the Class Period. Specifically, the Complaint alleges that throughout the Class Period, defendants issued materially false and misleading statements that misrepresented the following adverse facts: (i) that Par was materially overstating its financial performance by failing to properly reserve for customer credits and uncollectible accounts. During the Class Period, Par overstated its income by at least $55 million; (ii) that Par was failing to timely write-down the value of impaired inventory. During the Class Period, Par overstated the worth of its inventory by at least $15 million; and (iii) based on the foregoing, Par's Class Period financial statements were materially false and misleading and not prepared in accordance with Generally Accepted Accounting Principles ("GAAP").

The complaint further alleges that, on July 5, 2006, Par admitted that its previously issued financial results and financial statements materially overstated the Company's financial performance and that the Company's financial statements were not prepared in accordance with GAAP. On that date, Par issued a press release announcing that it would be restating its financial statements for fiscal years 2004, 2005 and the first quarter of 2006 to correct for "an understatement of accounts receivable reserves which resulted primarily from delays in recognizing customer credits and uncollectible customer deductions." The Company reported that the effect of the restatement over reported periods will be $55 million, that the Company would also write down $15 million in inventory and that its prior financial statements "should not be relied upon." In response to the announcement of the restatement, the price of Par stock dropped from $18.25 per share to $13.47 per share on extremely heavy trading volume.

If you purchased Par securities during the Class Period, you may, no later than September 15, 2006 , move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.

If you have sustained substantial losses in Par securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at [e-mail] for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.

If you wish to join this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Robert M. Roseman, toll-free at 888-844-5862 or via e-mail at [e-mail]. For more detailed information about the firm please visit its website at http://www.srk-law.com.

Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered through judgments and settlements on behalf of thousands of defrauded shareholders and companies.