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Case ID: 4655 | Stocks | 02/10/2006
A class action has been filed against Omnicare, Inc. (OCR), certain of its officers and directors by stockholders who purchased the company's common stock between August 3, 2005 and January 27, 2006. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.
According to a press release dated February 2, 2006, the complaint charges Omnicare and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Omnicare provides pharmaceutical care for elderly people primarily in the United States and Canada. Specifically, the complaint alleges that during the Class Period, defendants made false and misleading statements regarding the Company's business and prospects. As a result of these false statements, Omnicare stock traded at inflated levels during the Class Period, trading as high as $61.85 per share, and the Company was able to complete offerings of more than $2.5 billion worth of securities. On January 30, 2006, Associated Press reported that on January 27, 2006, according to the Cincinnati Enquirer, the Michigan attorney general's office raided Omnicare's offices in Livonia and other cities. On this news, an analyst with Stifel Nicolaus downgraded the stock due to his concerns regarding the raid and the potential for further raids on the Company's offices. In response, on January 30, 2006, Omnicare shares fell $5.09 to $49.96 in afternoon trading on the New York Stock Exchange. According to the complaint, the true facts, which were known by each of the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company was artificially inflating its earnings by engaging in improper generic drug substitution; (b) the Company was not in compliance with Medicare laws; (c) the implementation of the Medicare Part D Plan had dramatically increased the Company's costs and increased the number of rejected Medicare claims to nearly 40%; (d) the Company was not "well-positioned to add value under the new Medicare Part D" Plan, but rather, the Company lacked adequate staff and internal compliance controls to ensure the Company could benefit from the new plan and instead, the Part D Plan wreaked havoc on the Company's business model, sending costs, rejection rates and receivables far higher than shareholders were led to believe. If you bought Omnicare, Inc. securities between August 3, 2005 and January 27, 2006, inclusive, and would like to obtain information about the Omnicare, Inc. lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest A class action has been filed against Applica Incorporated (APN), certain of its officers and directors by stockholders who purchased the company's common stock between November 4, 2004 and April 28, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. A class action has been filed against Federated Investors, Inc. (NYSE: FII) and certain of its affiliated companies by investors who purchased shares in any of Federated's mutual funds between November 1, 1998 and October 21, 2003. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period. Several class actions have been filed against worldwide gaming company Alliance Gaming Corporation (NYSE:AGI) and certain of its officers and directors by stockholders who purchased the company's common stock between January 15, 2004, and June 7, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. A class action has been filed against Fairfax Financial Holdings, Ltd. (FFH), certain of its officers and directors by stockholders who purchased the company's common stock between March 24, 2004 and March 21, 2006. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. Motorola says it has settled a securities class action lawsuit related to Turkish wireless company Telsim. Several class actions have been filed against nutritional supplement manufacturer NBTY, Inc., (NYSE: NTY) and certain of its officers and directors by stockholders who purchased the company's common stock between April 22, 2004, and June 16, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. |
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