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Omnicare (OCR) is the nation's biggest supplier of drugs
to people in nursing homes, with 1.4 million customers in
47 states and Canada. On January 30, 2006, Omnicare Inc.
shares declined $6.09 per share, or 11.06 %, from $55.05
to $48.97 per share on heavier than usual volume. Last
Friday January 27, 2005, the Cincinnati Enquirer reported
that Michigan Attorney General, Mike Cox's, office
investigated Omnicare offices outside of Detroit.
It appears that the Company may be investigated by more
states than Michigan and may be the focus of a coordinated
effort by multiple states to investigate its drug pricing under
state Medicaid programs. According to Omnicare, the
federal government and 'certain states' are investigating
allegations that the company has been substituting the
antacid drug, Ranitidine, capsules for tablets; Fluoxetine
tablets for capsules; and switching one 15 milligram tablet
of Buspirone, an anti-anxiety medication, for two 7.5 mg tablets.
Previously, on January 13, 2006, Omnicare disclosed it
received a subpoena from the U.S. Attorney from
Massachusetts seeking information about its relationships
with manufacturers and distributors of certain
pharmaceutical products. It appears that a grand jury has
been convened in the District of Massachusetts.
Since January 12, 2006, prior to disclosure of the subpoena,
Omnicare shares have declined $11.40 per share or
approximately 19%.
Investors who purchased Omnicare between August 3, 2005
and January 27, 2006 are affected.
Ankor and Channel Stuffing
Arizona-based Amkor Technology, Inc. (AMKR) operates
as a subcontractor of semiconductor packaging and test
services worldwide. It has been alleged that the Company
issued a series of false and misleading statements to the
market artificially inflating the Company's stock. As a result
of this inflated stock price, the Company was able to raise
$152 million in a secondary offering and to complete a
$250 million note offering. Specifically, it is alleged that
Amkor failed to disclose that it was shipping inventory to
customers far in excess of demand and that, as a result of
this deliberate channel stuffing, the Company undermined
the future demand for its products.
Eventually the true condition of the Company was revealed.
On April 27, 2004, Amkor announced that the Company
was experiencing weakness for its cell phone products.
On this news, shares of Amkor fell $4.26 per share, or
31.74 %, to close, on April 27, 2004, at $9.16 per share.
A few months later, Amkor investors would be hit with more
bad news. On July 1, 2004, Amkor announced that it
failed to meet its expected guidance for net income in the
second quarter of 2004. On this news, shares of Amkor
fell $2.39 per share, or 29.22%, to close, on July 1, 2004,
at $5.79 per share.
Investors who purchased Amkor between October 27, 2003
and July 1, 2004 are affected.
If you are an affected Omnicare or Amkor investor or an
affected investor in any of the cases listed below under
investigation, you may wish to contact us at
info@securitiessleuth.com or 877.511.4717 and if you
leave a telephone number where you would like to be
reached, it would greatly facilitate communication.
Cases Under Investigation
Nautilus, Inc. (NLS)
On January 18, 2006, before the opening
of the market, the Company disclosed that it expected fourth
quarter 2005 net sales in the range of $179-183 million and
earnings per share in the $0.07-0.12 range. Previously, on
November 2, 2005, the Company provided fourth quarter
2005 guidance of net sales of $210 million and earnings
per share in the $0.44-0.48 range.
The market reacted strongly to the news and the stock
plunged almost 25%. Investors who purchased Nautilus
between April 27, 2005 and January 16, 2006 are affected.
Tumbleweed Communications Corp. (TMWD)
On January 9, 2006, the Company disclosed that it expected a
net loss of 1 cent to 2 cents a share, instead of a profit,
and that its CEO and Chairman resigned. On January 10, 2006,
the Company’s stock tumbled 20%. Investors who purchased
the stock between October 19, 2005 and January 9, 2006
are affected.
Bausch & Lomb (BOL)
At the end of December the Company indicated that it would
restate its financial results dating back to 2000 following an
investigation into improper conduct by management of its
Brazilian subsidiary. Investors who purchased in 2005 are
affected.
NL Industries (NYSE: NL)
On November 14, 2005, NL Industries disclosed that it will
restate its financial statement for the year ended
December 31, 2004 and the quarters ended March 31, 2005
and June 30, 2005. Investors who purchased NL stock
between May 4, 2004 and November 14, 2005
may be affected.
Now with respect to settled cases. If you are an affected
investor – you purchased any of these stocks during the
relevant class period, you may wish to contact the claims
administrator to obtain additional information. Remember,
if you don’t submit your claim form, you won’t receive your
proportionate share of recovery.
eFunds Corporation (EFD)
Class Period: July 21, 20000 to October 24, 2002
Claims Deadline: May 5, 2006
Claims Administrator: Gilardi
Uniroyal Technology Corp.(UTCIQ)
Class Period: February 8, 2000 to May 13, 2002
Claims Deadline: June 28, 2006
Claims Administrator: Garden City
Solectron Corp. (SLR)
Class Period: June 18, 2001 to September 26, 2002
Claims Deadline: March 28, 2006
Claims Administrator: Garden City
NUI Corp. (NUI)
Class Period: November 8, 2001 to October 17, 2002
Claims Deadline: March 7, 2006
Claims Administrator: Garden City
Asia Pulp & Paper Company, Ltd. (APUUY)
Class Period: August 28, 1999 to April 4, 2001
Claims Deadline: March 6, 2006
Claims Administrator: Analytics
Cornell Companies, Inc. (CRN)
Class Period: March 6, 2001 to March 5, 2002
Claims Deadline: March 3, 2006
Claims Administrator: Gilardi
Again, if you are affected by a settled case, then you should
contact the claims administrator (rather than us). However,
if you are an affected investor in any of the companies under
investigation, you many wish to contact us so that you
can consider your options.
Likewise, if you happen to be aware of corporate restatements
or other financial fraud -- especially if you're a victim --
you're encouraged to contribute to the Sleuth by giving your
own tip-offs at www.securitiessleuth.com or by e-mailing
info@securitiessleuth.com. You can also call Mark McNair
at 877-511-4717. If you have a friend or colleague you
think would benefit from The Sleuth, please pass along
this issue and ask them to sign up at
www.cartville.com/app/join.asp?MerchantID=47994.
Warmest regards,
Mark McNair
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