A class action lawsuit has been filed in the United States District Court for the District of Arizona on behalf of purchasers of Medicis Pharmaceutical Corporation (NYSE: MRX) securities during the period between October 30, 2003 and September 23, 2008 (the “Class Period”). The complaint charges Medicis and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Medicis, together with its subsidiaries, operates as a specialty pharmaceutical company in the United States and Canada.
The complaint alleges that during the Class Period, defendants made false and misleading statements about the Company’s financial performance. Specifically, defendants overstated the Company’s revenues and earnings by failing to account for returns in accordance with Generally Accepted Accounting Principles.
On September 24, 2008, before the market opened, the Company issued a press release announcing that its Audit Committee had concluded that the Company’s financial statements for the annual, transition and quarterly periods in fiscal years 2003 through 2007 and the first and second quarters of 2008, will likely need to be restated and should no longer be relied upon. According to the Company, the restatement was related to a modification in the Company’s technical interpretation of the Generally Accepted Accounting Principles relating to sales return reserve calculations. The Company’s prior accounting method, with respect to sales return reserves, accrued returns at replacement cost rather than deferring the gross sales price, based on the Company’s view of the economic impact of returns on its business. As a result of this disclosure, Medicis’s stock price dropped from $17.92 on September 23, 2008 to $15.58 the next day.
If you are a current shareholder and purchased during period between October 30, 2003 and September 23, 2008 and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.