Medicis Pharmaceutical Corp. Case 10/03/2008

DECEMBER 2011 - According to the Notice:

CLASS RECOVERY: The proposed Settlement is $18,000,000 (the “Gross Settlement Fund”). Class Plaintiffs estimate that there were approximately 47.8 million allegedly damaged shares of Medicis common stock purchased during the Class Period, and approximately 45.2 thousand stock option contracts (where an option contract represents 100 shares) on Medicis common stock traded during the Class Period. Pursuant to the Plan of Allocation (see Section III herein) allotting the Settlement Fund among the Class Members, and based on assumptions and calculations made by Class Plaintiffs’ experts, the average per share recovery will depend upon, among other things, the number of Class Members submitting valid claims. The average per share recovery, before the deduction of any Court awarded attorneys’ fees and expenses, is $0.38 per share. Please be advised that the foregoing average per share recovery is an estimate. An explanation of how a Class Member’s claim will be calculated is set forth in Section III.

POTENTIAL OUTCOME OF THE CASE: Class Plaintiffs and Defendants vigorously disagree about both liability and damages, and do not agree as to whether Class Plaintiffs would prevail on the alleged claims if the Action proceeded or the average amount per share that would be recoverable if Class Plaintiffs did prevail on each claim alleged under the Securities Exchange Act of 1934 (“Exchange Act”). With respect to the damages alleged in the Action, Class Plaintiffs and Defendants disagree on, among other things, the amount of damages per share, if any, Class Plaintiffs would be able to prove at trial; the methodology used to determine any such damages; and whether there were any mitigating circumstances which would reduce any or all of the damages alleged by Class Plaintiffs.

REASONS FOR SETTLEMENT: Class Plaintiffs believe that the Settlement is fair, reasonable, and adequate to members of the Class. Class Plaintiffs and their counsel have reached this conclusion after investigating and considering, among other things, the strengths and weaknesses of Class Plaintiffs’ claims against Defendants, including the Defendants’ contentions that the Class’s claims are without merit, the uncertainties in this complex litigation, and the concrete benefits provided by the Settlement to the members of the Class. Defendants expressly deny that they have committed any act or omission giving rise to
any liability or violation of law whatsoever and that Class Plaintiffs or Class Members sustained any recoverable damages. Defendants state that they are entering into the Settlement solely to eliminate the uncertainties, burden, risk and expense of further litigation of the Action.

NOVEMBER 2011 - Settlement has been proposed with Medicis Pharmaceutical Corporation.

OCTOBER 2008 - According to a press release by a law firm on October 3, 2008 a shareholder filed a class action lawsuit on behalf of all purchasers of Medicis Pharmaceutical Corp. (“Medicis”) (NYSE: MRX - News) stock during the period from October 30, 2003 through September 24, 2008 (the “Class Period”).

The action is pending in the United States District Court for the District of Arizona. The complaint charges that Medicis and certain of its officers violated Sections 10(b) and 20(a) of the Exchange Act by issuing materially inaccurate financial statements to the investing public. On September 24, 2008, Medicis announced that it intends to restate its financial statements for each of the accounting periods beginning July 1, 2003 and ending June 30, 2008, and that investors can no longer rely on these financial statements. The restatement is necessary because Medicis applied an improper accounting method in determining reserves for sales returns during the Class Period. News of the pending restatement caused Medicis’ stock price to fall significantly, damaging investors.