About Our Firm

Our Areas of Practice

Our Attorneys

Recently Filed Actions

Join a Class Action

Report Fraud

Significant Recoveries

Notices & Proof of Claims

Contact Us


NEW YORK - July 20, 2001- Kaplan Fox (KaplanFox.com) has filed a class action against PSS World Medical, Inc ("PSSI" or the "Company") (NASDAQ:PSSI) and certain of the Company's officers and directors in the United States District Court for the Middle District of Florida. The suit is brought on behalf of all persons or entities who purchased the common stock of PSS World Medical, Inc. between October 26, 1999 through October 3, 2000 inclusive (the "Class Period").

The complaint charges PSSI and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, defendants issued a series of false and misleading press releases, filed quarterly reports and an annual report with the Securities and Exchange Commission, which materially overstated the Company's net income in violation of Generally Accepted Accounting Principles, thereby artificially inflating the price of PSSI securities. On June 22, 2000, Defendants issued a press release announcing that it had entered into a definitive stock-for-stock merger agreement with Fisher Scientific International, Inc. (``Fisher''). The market reacted favorably to this announcement because of the value of the exchange ratio of Fisher's shares. One of the key terms of the merger, which was belatedly disclosed by the Company, was that the Company had to report EBITDA of not less than $23 million for the quarter in order for the merger to be consummated. In an August 8, 2000 press release, defendants announced that they were in compliance with this provision of the merger agreement and that the merger was expected to proceed.

On September 1, 2000, the Company issued a press release reporting that the merger agreement had been terminated. On October 3, 2000, the Company announced that defendant Patrick C. Kelly, PSS's Chairman and Chief Executive Officer, was leaving the Company and that earnings for the quarter ended September 30, 2000 would be below analysts' expectations. PSS common stock traded as high as $11.38 per share during the Class Period, and declined to $2.40 per share following these disclosures.

While Fisher had abandoned the merger because of the results of its own due diligence review of the Company's books and records, the public only became aware of the truth on June 27, 2001. On that date, PSSI filed its Form 10-K for the fiscal year ended March 31, 2001 with the SEC and disclosed, for the first time, the fact that the Company's internal controls over inventory, accounts payable, sales, and accounts receivable were, at all relevant times, materially deficient and that the Company had previously issued financial statements for the quarter ended June 30, 2000 which were materially misleading. As a result of these problems, the Company would be forced to restate its previous financial data, and would also cause the Company's EBITDA to be reduced, below the threshold that would have allowed the merger to be completed.

Plaintiff seeks to recover damages on behalf of the Class and is represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York, San Francisco, Chicago and New Jersey has many years of experience in prosecuting investor class actions and actions involving financial fraud. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.KaplanFox.com.

If you are a member of the Class, you may move the court no later than September 11, 2001 to serve as a lead plaintiff for the Class. In order to serve as a lead plaintiff, you must meet certain legal requirements.

If you have any questions about this Notice, the action, your rights, or your interests, please e-mail us at mail@KaplanFox.com or contact:

Frederic S. Fox, Esq.
Janine R. Azriliant, Esq.
Kaplan Fox & Kilsheimer LLP
805 Third Avenue - 22nd Floor
New York, NY 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail address: mail@KaplanFox.com

Laurence D. King, Esq.
Kaplan Fox & Kilsheimer LLP
100 Pine Street, 26th Floor
San Francisco, CA 94111
(415) 336-1238
Fax: (415) 677-1233
E-mail address: mail@KaplanFox.com

Back to the Main List

  Please Click Here to Join the Class Actions or Request Information




For additional information about Kaplan Fox & Kilsheimer LLP

contact (mail@KaplanFox.com)

© Copyright 2001, Kaplan Fox & Kilsheimer LLP