Case Page

 

Case Status:    SETTLED
On or around 12/11/2013 (Other)

Filing Date: July 17, 2006

The original complaint alleges violations of Sections 10(b) and 20(a) the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Par, headquartered in New Jersey, develops, manufactures and markets more than 110 generic drugs and innovative branded pharmaceuticals for specialty markets. Specifically, the Complaint alleges that throughout the class period, defendants reported earnings that were materially inflated as a result of accounting errors including an understatement of accounts receivable reserves. The Company has now admitted that the overstatement of its revenues has resulted in Par overpaying its business partners in various profit sharing arrangements. As a result of the Company's internal review of its trade accounts receivable balances, the Company has decided to restate its previously reported financial statements for fiscal year 2004 and 2005 and the first quarter of 2006. In addition, Par announced it will write-off inventory in an amount up to $15 million due to flawed physical inventory procedures. In response to these revelations, on July 6, 2006, Par stock fell $4.78 per share, losing nearly 26% of its value in one day on extremely high volume of over 9 million shares traded, to close at $13.47 per share

A similar, purported class action complaint has also been filed in the U.S. District Court for the Southern District of New York.

On November 6, 2006, the Court entered the Pretrial Order No. 1 consolidating several similar class action under In re Par Pharmaceutical Securities Litigation, Master File No. 06-3226. The Consolidated Amended Complaint was filed on April 30, 2007 and the defendants filed a motion to dismiss on July 13, 2007. On June 24, 2008, the judge ordered in favor of the defendants' motion to dismiss, granting plaintiffs leave to amend the deficiencies of scienter in the complaint. Plaintiffs filed their Second Amended Consolidated Complaint on July 23, 2008. Defendants responded with a second round of motions for dismissal on September 17, 2008. On September 30, 2009, Judge Peter G. Sheridan signed the Opinion and Order granting in part and denying in part the defendants’ motion to dismiss.

The parties engaged in discovery proceedings. On October 15, 2010, the plaintiffs filed a motion to certify the class. On March 17, 2011, the Court entered the stipulation and order withdrawing without prejudice the motion to certify the class. Plaintiff may refile the motion at a later date. On September 9, 2011, the plaintiffs filed a motion to certify the class.

On July 23, 2012, the Court issued an Order granting the Plaintiff's motion for class certification.

On July 29, 2013, the Court issued an Order granting final approval of the Settlement and awarding attorneys' fees and expenses. The Clerk was directed to close this matter. On the next day, the Court issued an Order that vacated and superseded the July 29 Order.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Major Drugs
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: PRX
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. New Jersey
DOCKET #: 06-CV-03226
JUDGE: Hon. Ronald J. Hedges
DATE FILED: 07/17/2006
CLASS PERIOD START: 04/29/2004
CLASS PERIOD END: 07/05/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Law Office Of Benjamin Levine
    One Gateway Center, Suite 2500, Law Office Of Benjamin Levine, NJ 07102
    973.623.3000 ·
  2. Pomerantz Haudek Block Grossman & Gross LLP (former Chicago)
    1 North LaSalle Street, Suite 2225, Pomerantz Haudek Block Grossman & Gross LLP (former Chicago), IL 60602
    312.377.1181 312.377.1184 · info@pomerantzlaw.com/
  3. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
No Document Title Filing Date
COURT: D. New Jersey
DOCKET #: 06-CV-03226
JUDGE: Hon. Ronald J. Hedges
DATE FILED: 07/23/2008
CLASS PERIOD START: 07/23/2001
CLASS PERIOD END: 07/05/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    58 South Service Road, Suite 200, Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 · info@csgrr.com/
  2. Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 · info@csgrr.com/
  3. Federman & Sherwood (Oklahoma City)
    120 North Robinson, Suite 2720, Federman & Sherwood (Oklahoma City), OK 73102
    405-235-1560 · wfederman@aol.com
No Document Title Filing Date
No Document Title Filing Date