Class Action Lawsuit News

Seeger Weiss LLP Announces Shareholder Class Action Lawsuit Against Bradley Pharmaceuticals, Inc.

"NEW YORK, March 8, 2005 (PRIMEZONE) -- The law firm Seeger Weiss LLP announces that it filed a class action lawsuit today in the United States District Court for the District of New Jersey on behalf of all purchasers of the common stock of Bradley Pharmaceuticals, Inc. ('Bradley Pharmaceuticals') (NYSE:BDY) between October 8, 2003 and February 25, 2005, inclusive (the 'Class Period'), seeking to pursue remedies under the Securities Exchange Act of 1934 (the 'Exchange Act').

The complaint charges that defendants Bradley Pharmaceuticals, Daniel Glassman (Chairman, President and CEO) and R. Brent Lenczycki (CFO and Vice President) with violations of the Exchange Act by issuing a series of material misrepresentations to the market during the Class Period. The complaint alleges that Bradley Pharmaceuticals, a specialty pharmaceutical company that acquires, develops and markets prescription and over-the-counter products in select markets failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company was materially overstating its financial results by engaging in improper accounting practices; (2) that the Company's future sales growth from its Keralac Franchise would be hindered by generic competition; and (c) as a result of the foregoing, there was no reasonable basis for the Company's revenue and earnings guidance.

The complaint alleges that Bradley Pharmaceuticals announced on February 28, 2005 that the Securities and Exchange ('SEC') was conducting an informal inquiry regarding the Company's revenue recognition and capitalization of certain payments. The Company also announced that it would not be releasing its 2004 earnings on the scheduled date. The complaint further alleges that on news of the SEC investigation and the delay in the Company reporting its 2004 financial results, the market reacted negatively and Bradley Pharmaceuticals' common stock dropped by almost 30%, closing at $9.75, which was a drop of about $3.50 per share." (Read more here)

posted by Monkeyman @ 10:04 PM