Press Release
SOURCE: Akorn, Inc.
Akorn, Inc. Discloses Proposed SEC Action
BUFFALO GROVE, Ill., April 2 /PRNewswire-FirstCall/ -- Akorn, Inc. (Nasdaq: AKRN - news) today announced that it has been informed that the staff of the Securities and Exchange Commission's regional office in Denver, Colorado plans to recommend to the Commission that it bring an enforcement action against the Company for injunctive relief, as well as against certain of its former officers and a current employee. The recommended actions concern the Company's alleged misstatements, in quarterly and annual SEC filings and press releases, of its income for fiscal year 2000 as a result of an alleged failure to adequately reserve for doubtful accounts receivable and alleged overstatement of accounts receivable balances. The Company recorded a substantial charge to the reserve for doubtful accounts receivable in the first quarter of 2001, and believes these charges generally relate to the same accounts receivable that the staff alleges were overstated in fiscal year 2000.
The Company disagrees with the staff's proposed recommendation and allegations. The Company has been invited to submit its views as to why an enforcement action should not be brought, and intends to do so. Because the proposed enforcement action relates to matters in a prior fiscal year, it is not anticipated that these proceedings will have any material impact on the Company's current or future financial results.
About Akorn, Inc.
Akorn, Inc. manufactures and markets sterile specialty pharmaceuticals, and markets and distributes an extensive line of pharmaceuticals and ophthalmic surgical supplies and related products.
The information contained in this news release, other than historical information, consists of forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Such statements, including, but not limited to, the timing of acquiring and developing new products, of bringing them on line and deriving revenues and profits from them, as well as the effects of those revenues and profits on the Company's margin and financial position are uncertain because many of the factor affecting the timing of those items are beyond the Company's control. Such statements are based on management's current expectations, but actual results may differ materially due to various factors including risks and uncertainties mentioned or referred to in this press release or in the filings the Company makes with the Securities and Exchange Commission including it annual reports on Form 10-K and its quarterly reports on Form 10-Q.
SOURCE: Akorn, Inc.
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