On August 22, 2008, a Notice of Appeal was filed by the lead plaintiff in the matter to contest the orders dated May 24, 2002, and August 12, 2002.
According to a press release dated June 15, 2004, Alpharma Inc., announced that a three judge panel of the United States Court of Appeals for the 3rd Circuit has affirmed the District Court's dismissal with prejudice of the Securities Law class action filed against the company. This ruling effectively terminates this lawsuit subject to the plaintiff's right to appeal this decision to the full Court of Appeals for the 3rd Circuit on the U.S. Supreme Court.
As previously reported by the Company’s FORM 10-K for the fiscal year ended December 31, 2003, the Company moved to dismiss the complaint on legal grounds and the District Court granted its motion with prejudice as to all defendants. The plaintiffs filed a motion for reconsideration with the District Court and the District Court affirmed its earlier dismissal. The plaintiffs have appealed the Court's decision to the Third Circuit Court of Appeals. All permitted briefs have been filed with the Third Circuit and oral argument was completed in 2003.
The original complaint alleges that, during the Class Period, Alpharma issued materially false and misleading financial results for each quarter of 1999, the full year of 1999, and the first two quarters of 2000. These false and overstated results artificially inflated Alpharma's stock price. On October 30, 2000, Alpharma admitted that its reported financial results throughout the Class Period had been inflated through the reporting of falsified sales and the recording of phantom revenue. On October 30, 2000, Alpharma admitted that the revenues, net income and earnings per share it had reported throughout the Class Period had been materially overstated, false and misleading, and in need of restatement. When Alpharma revealed its true earnings for the Class Period,
shares of Alpharma's common stock lost 31% of their value in one day, falling
from $17.69 per share to close at $ 38.81 per share on October 31, 2000.