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Sometimes when an IPO is issued, investors realize several
months later that they didn't get the true facts. But finding
out one week after the IPO is issued that the stock has
tanked because the Registration Statement omitted key facts.
That really hurts.
That what appears happened to investors in Warner Chilcott
Limited (NASDAQ:WCRX). The company is engaged in the
development, manufacture, sale, and marketing of branded
prescription pharmaceutical products in women's healthcare
and dermatology primarily in the United States.
Specifically, it is alleged that the Registration Statement issued
in connection with the IPO contained untrue statements of
material facts, omitted to state other facts necessary to
make the statements made not misleading and was not
prepared in accordance with the rules and regulations
governing its preparation. On September 26, 2006, Warner
Chilcott announced developments in a lawsuit brought against
it by the Federal Trade Commission and filed a supplement to
the Registration Statement in which it disclosed that, among
other things, it had ceased shipments of Ovcon 35 in
September, 2006 when it launched Ovcon Chewable.
In response to these disclosures, the price of Warner Chilcott
common stock dropped from $15.00 per share to
$12.60 per share on extremely heavy trading volume.
Investors who purchased shares pursuant and/or traceable
to the Company's initial public offering on or about
September 20, 2006 through September 26, 2006 are affected.
More Companies with Stock Option Problems
Quest Software (NASDAQ: QSFT) and Apollo Group
(NASDAQ: APOL) are among the dozens of companies that
are under scrutiny for improperly backdating stock options
to enrich themselves at the expense of shareholders.
One of the latest companies to be scrutinized is California-based
Quest Software, Inc. (NASDAQ: QSFT). The Company engages
in the design, development, distribution, and support of application
management, infrastructure management, and database
management software products.
It is alleged that the Company recklessly and intentionally
instituted deficient internal controls surrounding the administration
of the Company's stock option plan which enabled certain
employees to enrich themselves by knowing and fraudulently
changing the stock option grant dates to dates on which the
Company's stock price was lower than the actual grant date.
It appears that investors who purchased Quest Software between
November 9, 2001 and July 3, 2006, are affected.
The events at Apollo Group (NASDAQ: APOL) have to be shocking to shareholders. On October 18, 2006, the Apollo Group said its
review of stock option practices shows that "various deficiencies
in the process of granting and documenting stock options have
been identified to date." On October 18, 2006, Apollo shares
declined $11.13 per share to close at $37.55 or approximately 23%.
Subsequently, the Company disclosed that it will restate certain
financial statements for 2001 to 2005 and the first two quarters
of 2006; the Company's Chief Financial Officer and Treasurer has
resigned; and the Company's Chief Accounting Officer was placed
on administrative leave. The Company also is the subject of an
SEC inquiry and a criminal investigation by the U.S. Attorney of
New York.
Investors who purchased Apollo between November 28, 2001
and October 18, 2006, are affected, and may wish to consider
their legal options.
If you are an affected shareholder in Warner Chilcott Limited,
Quest Software, Inc., Apollo Group or any of the companies listed
below (details available at www.securitiessleuth.com), you may
wish to contact us at info@securitiessleuth.com or 877.511.4717
to discuss your options.
Other Cases Under Investigation
BP Prudhoe Bay Royalty Trust (BPT)
CNET Networks (NASDAQ: CNET)
Jabil Circuit, Inc. (NYSE: JBL)
Marvell Technology Group
McAfee Inc. (NYSE: MFE)
Meade Instruments Corp. (NASDAQ: MEAD)
Presstek, Inc. (NASDAQ: PRST)
Now with respect to securities cases that have recently settled.
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 share of any settlement.
Ask Jeeves (ASKJ)
Class Period: November 18, 1999 to May 16, 2000
Claims Deadline: February 5, 2007
Claims Administrator: Rust Consulting
Broadwing, Inc. (BRW)
Class Period: January 17, 2001 to May 21, 2002
Claims Deadline: November 30, 2006
Claims Administrator: Garden City
Information regarding other recent settled cases, including
the cases listed below can be found at www.securitiessleuth.com.
Advanced Marketing Services
King Pharmaceuticals, Inc.
MasTec, Inc.
McLeodUSA, Inc.
Again 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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