ELN
Monday February 18, 7:30 am Eastern Time
Press Release
SOURCE: Chitwood & Harley
Atlanta Law Firm Chitwood & Harley Announces Class Action Lawsuit Against Elan Corporation
ATLANTA--(BUSINESS WIRE)--Feb. 18, 2002--Notice is hereby given that a class action lawsuit (Civil Action No. 2:02-CV-0015-WCO) has been filed in the United States District Court for the Northern District of Georgia, Gainesville Division, on behalf of all persons who purchased Elan Corporation plc (``Elan'' or the ``Company'') (NYSE: ``ELN'') American Depository Receipts (``ADRs'') between April 23, 2001 and January 29, 2002, inclusive (the ``Class Period'').
The complaint charges Elan and certain of its officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that during the Class Period, defendants misled their investors by issuing false and misleading statements and failing to disclose material facts about the Company's business. Defendants misrepresented the truth about, inter alia, Elan's improper accounting practices that artificially inflated the Company's reported revenues (resulting in the artificial inflation of the asset side of Elan's balance sheet). As a result, Class members paid more for Elan ADRs than they would have if the truth had been disclosed.
On January 30, 2002, The Wall Street Journal raised questions about how Elan has been accounting for drug-development joint ventures with other companies. According to the article, Elan would invest in a partner company, which would then return the ``investment'' to Elan in the form of a technology-licensing fee. Elan then would report the fee as revenue. This revelation stunned the market, causing the value of Elan's ADRs to plummet 16% from the prior day's closing. Then on February 4, 2002, Elan announced that its earnings for the fourth quarter of 2001 would drop 84% and that its profits for fiscal year 2001 would fall well short of estimates. In the wake of this announcement, Elan's ADRs plunged again, losing over 50% of their value in a single day of trading.
Plaintiff seeks to recover damages on behalf of all those who purchased Elan ADRs during the Class Period. If you purchased Elan ADRs during the Class Period, you may join in the action and move for appointment as lead plaintiff. Any member of the proposed class who wishes to move the Court to serve as lead plaintiff must do so no later than April 5, 2002. In order to serve as lead plaintiff, you must meet certain legal requirements.
Plaintiff is represented by Chitwood & Harley, an Atlanta law firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States in both federal and state courts and has been instrumental in recovering hundreds of millions of dollars on behalf of investors and shareholders.
If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact Krissi Temple at 1-888-873-3999 (toll-free) or by e-mail at mkt@classlaw.com, CHITWOOD & HARLEY, 2900 Promenade II, 1230 Peachtree Street, N.E., Atlanta, Georgia 30309. For more information about Chitwood & Harley, please visit our website at www.classlaw.com.
--------------------------------------------------------------------------------
Contact:
Chitwood & Harley, Atlanta
Martin D. Chitwood or M. Krissi Temple
1-888/873-3999 or 404-873-3900
mkt@classlaw.com |
