NEW YORK, Oct. 28, 2008 (LAWFUEL) — Pomerantz Haudek Block
Grossman & Gross LLP (www.pomerantzlaw.com) (“Pomerantz”) has filed a
class action lawsuit in the United States District Court, District of
Arizona, against Medicis Pharmaceutical Corporation (“Medicis” or the
“Company”) (NYSE:MRX) and certain officers of the company. The class
action was filed on behalf of purchasers of the common stock of the
Company during the period from October 30, 2003 to September 23, 2008,
both dates inclusive, (the “Class Period”). The complaint alleges
violations of Sections 10(b) and 20(a) of the Exchange Act and Rule
10b-5 promulgated there under.
Medicis develops and markets products for the treatment of
dermatological, aesthetic, and podiatric conditions. The complaint
alleges that during the class period, defendants issued materially
false and misleading statements regarding the Company’s business and
financial results. Specifically, defendants overstated the Company’s
revenues and earnings by failing to properly account for returns in
accordance with Generally Accepted Accounting Principles (“GAAP”).
The complaint specifically alleges that on September 24, 2008, the
Company announced that its Audit Committee concluded that the Company’s
financial statements for fiscal years 2003 through 2007 and the first
and second quarters of 2008 would need to be restated due to improper
return reserve calculations. Medicis admitted that it had improperly
“accrued returns at replacement cost rather than deferring the gross
sales price” and that it would have to revise “its reserve calculations
to defer the gross sales value of the returned product.” On this news,
Medicis’ stock dropped $2.34 per share to close at $15.58 per share, a
one-day decline of 13%. As a result of the challenged statements,
Medicis’ common stock traded at artificially inflated prices throughout
the Class Period, resulting in damage to class members who had
purchased at prices inflated by defendants’ materially false and
misleading statements.
If you purchased or acquired the securities of Medicis during the class
period, you have until December 2, 2008 to ask the Court to appoint you
as lead plaintiff for the class. Lead plaintiffs must meet certain
legal requirements. Shareholders outside the United States may join the
action. If you wish to review a copy of the Complaint, to discuss this
action, or have any questions, please contact Teresa L. Webb
(tlwebb@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or
888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to
include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago, Washington,
D.C., Columbus, Ohio and the San Francisco Bay area, is acknowledged as
one of the premier firms in the areas of corporate, securities, and
antitrust class litigation. Founded by the late Abraham L. Pomerantz,
known as the dean of the class action bar, the Pomerantz Firm pioneered
the field of securities class actions. Today, more than 70 years later,
the Pomerantz Firm continues in the tradition he established, fighting
for the rights of the victims of securities fraud, breaches of
fiduciary duty, and corporate misconduct. The Firm has recovered
numerous multimillion-dollar damages awards on behalf of class members.
