D & K Healthcare (NASDAQ:DKHR)
Historical Stock Chart
From Jun 2019 to Jun 2024
Cauley Geller Announces Class Action Lawsuit Against D&K
Healthcare Resources, Inc. on Behalf of Investors
NEW YORK, April 9 /PRNewswire/ -- The Law Firm of Cauley Geller Bowman &
Rudman, LLP announced today that a class action lawsuit has been filed in the
United States District Court for the Eastern District of Missouri on behalf of
purchasers of D&K Healthcare Resources, Inc. ("D&K Healthcare" or the
"Company") common stock during the period between April 23, 2001 and September
16, 2002, inclusive (the "Class Period"). A copy of the complaint filed in this
action is available from the Court, or can be viewed on the firm's website at
http://www.cauleygeller.com/show_case.asp?ccode=271&pcode=10&pp=4 .
The complaint charges D&K Healthcare, J. Hord Armstrong, III, Martin D. Wilson,
and Thomas S. Hilton with violations of Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. More
specifically, the complaint alleges that, throughout the Class Period,
defendants issued numerous statements to the market concerning the Company's
financial results, which failed to disclose and/or misrepresented the following
adverse facts, among others: (1) that the Company's seemingly positive financial
results were, in material part, based on its incentive- laden deals with Bristol
which could not be sustained in the long-term; (2) given the terms of the
incentive-laden deals with Bristol, the Company was subject to the heightened
risk that Bristol would stop providing it with favorable purchasing
opportunities; and (3) based on the foregoing, defendants lacked a reasonable
basis for their positive statements about the Company and their earnings
projections throughout the class period.
On September 16, 2002, after the close of trading, D&K Healthcare shocked the
market when it announced that it was reducing its "EPS guidance before one-time
charges related to the implementation of SFAS 142 to approximately $0.13 --
$0.17, from $0.30 to $0.31." According to the Company, during the first two
months of the fiscal 2003 first quarter, D&K's internal revenue and margin
objectives for its national chain business were not achieved. The sales
shortfall is principally the result of fewer than expected purchasing and sales
opportunities available during the period. D&K's sales in the national chain
business have been variable from month to month historically, driven largely by
opportunistic purchases from pharmaceutical companies for distribution primarily
to national chains.
In response to this announcement, on September 17, 2002, the price of D&K
Healthcare common stock dropped more than 60% to close at $9.51 per share on
unusually high trading volume.
If you bought D&K Healthcare common stock between April 23, 2001 and September
16, 2002, inclusive, and you wish to serve as lead plaintiff, you must move the
Court no later than April 14, 2004. If you are a member of this class, you can
join this class action online at
http://www.cauleygeller.com/template8.asp?pcode=6&pp=1 . Any member of the
purported class may move the Court to serve as lead plaintiff through Cauley
Geller or other counsel of their choice, or may choose to do nothing and remain
an absent class member.
CauleyGeller is a national law firm that represents investors and consumers in
class action and corporate governance litigation. It is one of the country's
premiere firms in the area of securities fraud, with in-house finance and
forensic accounting specialists and extensive trial experience. Since its
founding, Cauley Geller has recovered in excess of two billion dollars on behalf
of aggrieved shareholders. The firm maintains offices in Boca Raton, Little
Rock and New York.
If you have any questions about how you may be able to recover for your losses,
or if you would like to consider serving as one of the lead plaintiffs in this
lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's
website at http://www.cauleygeller.com/ .
Contact:
CAULEY GELLER BOWMAN & RUDMAN, LLP
Samuel H. Rudman, Esq. or David A. Rosenfeld, Esq.
Client Relations Department:
Jackie Addison
P.O. Box 25438
Little Rock, AR 72221-5438
Toll Free: 1-888-551-9944
Fax: 1-501-312-8505
E-mail:
DATASOURCE: Cauley Geller Bowman & Rudman, LLP
CONTACT: Samuel H. Rudman, Esq. or David A. Rosenfeld, Esq., both of
Cauley Geller Bowman & Rudman, LLP, +1-631-367-7100
Web site: http://www.cauleygeller.com/
http://www.cauleygeller.com/show_case.asp?ccode=271&pcode=10&pp=4
http://www.cauleygeller.com/template8.asp?pcode=6&pp=1