| Company: | D&K Healthcare Resources, Inc. |
| Ticker Symbol: | NASD: DKHR |
| Class Period: | April 23, 2001 to September 16, 2002 |
| Court: | Eastern District, MO |
| Date Filed: | Apr-09-04 |
| Lead Plaintiff Deadline: | Apr-14-04 |
| Allegations: |
A class action lawsuit has been filed in the United States District Court for the Eastern District of Missouri on behalf of purchasers of D&K Healthcare Resources, Inc. (Nasdaq: DKHR; "D&K Healthcare" or the "Company") common stock during the period between April 23, 2001 and September 16, 2002, inclusive (the "Class Period").
The complaint charges D&K Healthcare, J. Hord Armstrong, III, Martin D. Wilson, and Thomas S. Hilton with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that, throughout the Class Period, defendants issued numerous statements to the market concerning the Company's financial results, which failed to disclose and/or misrepresented the following adverse facts, among others: (1) that the Company's seemingly positive financial results were, in material part, based on its incentive- laden deals with Bristol which could not be sustained in the long-term; (2) given the terms of the incentive-laden deals with Bristol, the Company was subject to the heightened risk that Bristol would stop providing it with favorable purchasing opportunities; and (3) based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and their earnings projections throughout the class period.
On September 16, 2002, after the close of trading, D&K Healthcare shocked the market when it announced that it was reducing its "EPS guidance before one-time charges related to the implementation of SFAS 142 to approximately $0.13 -- $0.17, from $0.30 to $0.31." According to the Company, during the first two months of the fiscal 2003 first quarter, D&K's internal revenue and margin objectives for its national chain business were not achieved. The sales shortfall is principally the result of fewer than expected purchasing and sales opportunities available during the period. D&K's sales in the national chain business have been variable from month to month historically, driven largely by opportunistic purchases from pharmaceutical companies for distribution primarily to national chains.
In response to this announcement, on September 17, 2002, the price of D&K Healthcare common stock dropped more than 60% to close at $9.51 per share on unusually high trading volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint charges D&K Healthcare, J. Hord Armstrong, III, Martin D. Wilson, and Thomas S. Hilton with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that, throughout the Class Period, defendants issued numerous statements to the market concerning the Company's financial results, which failed to disclose and/or misrepresented the following adverse facts, among others: (1) that the Company's seemingly positive financial results were, in material part, based on its incentive- laden deals with Bristol which could not be sustained in the long-term; (2) given the terms of the incentive-laden deals with Bristol, the Company was subject to the heightened risk that Bristol would stop providing it with favorable purchasing opportunities; and (3) based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and their earnings projections throughout the class period.
On September 16, 2002, after the close of trading, D&K Healthcare shocked the market when it announced that it was reducing its "EPS guidance before one-time charges related to the implementation of SFAS 142 to approximately $0.13 -- $0.17, from $0.30 to $0.31." According to the Company, during the first two months of the fiscal 2003 first quarter, D&K's internal revenue and margin objectives for its national chain business were not achieved. The sales shortfall is principally the result of fewer than expected purchasing and sales opportunities available during the period. D&K's sales in the national chain business have been variable from month to month historically, driven largely by opportunistic purchases from pharmaceutical companies for distribution primarily to national chains.
In response to this announcement, on September 17, 2002, the price of D&K Healthcare common stock dropped more than 60% to close at $9.51 per share on unusually high trading volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
