DKHR D & K Healthcare Resources (MM)

Cauley Geller Announces Class Action Lawsuit Against D&K Healthcare Resources, Inc. on Behalf of Investors NEW YORK, April 9 /PRNewswire/ -- The Law Firm of Cauley Geller Bowman & Rudman, LLP announced today that 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. ("D&K Healthcare" or the "Company") common stock during the period between April 23, 2001 and September 16, 2002, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.cauleygeller.com/show_case.asp?ccode=271&pcode=10&pp=4 . 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 bought D&K Healthcare common stock between April 23, 2001 and September 16, 2002, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than April 14, 2004. If you are a member of this class, you can join this class action online at http://www.cauleygeller.com/template8.asp?pcode=6&pp=1 . Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller or other counsel of their choice, or may choose to do nothing and remain an absent class member. CauleyGeller is a national law firm that represents investors and consumers in class action and corporate governance litigation. It is one of the country's premiere firms in the area of securities fraud, with in-house finance and forensic accounting specialists and extensive trial experience. Since its founding, Cauley Geller has recovered in excess of two billion dollars on behalf of aggrieved shareholders. The firm maintains offices in Boca Raton, Little Rock and New York. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at http://www.cauleygeller.com/ . Contact: CAULEY GELLER BOWMAN & RUDMAN, LLP Samuel H. Rudman, Esq. or David A. Rosenfeld, Esq. Client Relations Department: Jackie Addison P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 Fax: 1-501-312-8505 E-mail: DATASOURCE: Cauley Geller Bowman & Rudman, LLP CONTACT: Samuel H. Rudman, Esq. or David A. Rosenfeld, Esq., both of Cauley Geller Bowman & Rudman, LLP, +1-631-367-7100 Web site: http://www.cauleygeller.com/ http://www.cauleygeller.com/show_case.asp?ccode=271&pcode=10&pp=4 http://www.cauleygeller.com/template8.asp?pcode=6&pp=1

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