Wolf Haldenstein Adler Freeman & Herz LLP filed a class action lawsuit in the United States District Court for the Eastern District of Missouri, on behalf of all persons who purchased the securities of Express Scripts, Inc. ('Express Scripts' or the 'Company') [NASDAQ:ESRX] between October 29, 2003 and August 3, 2004, inclusive, (the 'Class Period') against defendants Express Scripts and certain officers and directors of the Company.
The case name is Childress v. Express Scripts, Inc., et al. A copy of the complaint filed in this action is available from the Court, or can be viewed by clicking on the complaint link.
The complaint alleges that defendants violated the federal securities laws by issuing materially false and misleading statements throughout the Class Period that had the effect of artificially inflating the market price of the Company's securities.
Specifically, the complaint alleges that defendants failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (i) that Express Scripts artificially inflated the cost of generic drugs; (ii) that millions of dollars worth of rebates that belonged to its participating customers were diverted to the Company itself; (iii) that the Company caused, through fraud and deception, physicians to replace patients' prescribed drug with another for which Express Scripts was rewarded with money from the substituted drug's manufacturer; (iv) that the aforementioned deceitful practices were in violation of Generally Accepted Accounting Principles; (v) that the Company lacked adequate internal controls; and (vi) that as result of the foregoing, Express Scripts' financial results were materially inflated at all relevant times.
On July 28, 2004, Express Scripts announced second quarter net income of $65.4 million. The Company announced that the Company received a Notice of Proposed Litigation from the Office of the Attorney General of the State of New York in that announcement, in addition to discussing its fourth quarter financial results. On August 4, 2004, New York Attorney General's office announced that it filed a lawsuit against Express Scripts alleging that the Company conducted elaborate schemes that inflated the costs of prescription drugs by millions of dollars to New York State's largest employee health plan, the Empire Plan.
Additional cases were filed on behalf of investors. On October 4, 2004, motions were made to consolidate the various cases and appoint lead plaintiff and counsel. The Court appointed lead plaintiff and counsel. The Court has ordered that a consolidated complaint must be filed by September 6, 2005. Defendants' motion to dismiss is due forty-five days after that filing, plaintiffs' opposition is due forty-five days later, and defendants' reply is due thirty days following.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 60 attorneys in various practice areas; and offices in Chicago, New York City, San Diego, and West Palm Beach. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, or by telephone at (800) 575-0735 (Fred Taylor Isquith, Esq., George Peters, Esq., or Derek Behnke) or click on the link marked "Participate In This Class Action."