Scott + Scott, LLC Files Securities Action on Behalf of Biovail Shareholders; SEC Opens Inquiry Into Drugmaker's Accounting and
21 November 2003 - 9:58PM
PR Newswire (US)
Scott + Scott, LLC Files Securities Action on Behalf of Biovail
Shareholders; SEC Opens Inquiry Into Drugmaker's Accounting and
Financial Reporting COLCHESTER, Conn., Nov. 21 /PRNewswire/ --
Scott + Scott, LLC (scottlaw@scott-scott.com), a law firm with
offices in Connecticut and California, has filed a securities class
action in the United States District Court for the Southern
District of New York on behalf of all persons who purchased the
common shares of Biovail Corporation (NYSE: BVF - News; TSX: BVF -
News; "Biovail" or the "Company") between May 17, 2002 and October
30, 2003 (the "Class Period" or the "Class"). Late yesterday, the
Securities and Exchange Commission announced that it was opening an
"informal inquiry" into the drugmaker's accounting and financial
reporting. Biovail shares plummeted 20% to $18.51 earlier today.
The plaintiff-shareholder is pursuing remedies under the Securities
Exchange Act of 1934 (the "Exchange Act"). A copy of the complaint
filed in this action on behalf of investors is available from the
Court or can be obtained by calling Scott + Scott, LLC at
800/404-7770, e-mailing the firm at or , or going to the firm's
website (http://www.scott-scott.com/) and clicking on "IN THE
NEWS." While Biovail has called this lawsuit "frivolous," the
Canadian drugmaker has been criticized for not properly estimating
inventories of its drugs; low revenue from its generic brand of
Prilosec and excess inventory of heart drug Cardizem CD. Chief
Executive Eugene Melnyk has been criticized for the purchase of a
company plane by an entity he controlled, the use of Barbados as a
tax shelter for Biovail, a doctor compensation program that pays
doctors for using Cardizem LA and acquisitions that led to
confusing accounting. The Complaint alleges that Biovail and
certain of its officers and directors made materially false and
misleading statements during the Class Period. Specifically,
Defendants made material misrepresentations concerning Biovail's
financial results and business by improperly reporting revenue and
earnings attributable to sales. Plaintiff further alleges that
these material misrepresentations artificially inflated the price
of Biovail's common shares, which traded as high as $ 50.30 on the
New York Stock Exchange and as high as CD $ 67.75 on the Toronto
Stock Exchange during the Class Period. The stock opened today in
New York at $ 24.50. Scott + Scott, LLC is engaged in the
representation of funds, foundations, endowments, institutions,
pension funds, individuals, and other entities throughout the world
in securities, antitrust and other complex class and non- class
action litigation. The firm maintains the highest standards for
client satisfaction and communication. The firm's attorneys
litigate in both state and federal courts throughout the nation.
The firm has been appointed lead counsel in cases nationwide,
including the ongoing ImClone Securities Litigation. The firm also
recently settled cases against Mattel and Emulex in which it was
lead counsel. Scott + Scott, LLC issues this release in accordance
with the applicable federal securities laws. If you wish to discuss
this action, have any questions concerning this notice, your rights
with respect to this matter or any other securities fraud matter
please contact Neil Rothstein Esq.,, or David Scott Esq., , Scott +
Scott, LLC, 108 Norwich Avenue, Colchester, Connecticut 06415 at
800/404-7770 (fax: 860/537-4432). DATASOURCE: Scott + Scott, LLC
CONTACT: Neil Rothstein Esq., , or David Scott Esq., , of Scott +
Scott, LLC, +1-800-404-7770
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