SECURITIES FRAUD
 

Securities Class Action Suit Filed Against PolyMedica Corporation

On November 27, 2000, the firm of Shapiro Haber & Urmy LLP filed a securities class action entitled Bowe SEP-IRA v. PolyMedica Corp., et al., C. A. No. 00-CV-12426 (REK), in the United States District Court for the District of Massachusetts against PolyMedica Corporation and certain officers or directors of the Company.

The class consists of all persons who purchased the common stock of PolyMedica from October 26, 1998 through August 21, 2001, inclusive.

The complaint alleges that the defendants violated section 10(b) of the Securities Exchange Act of 1934 ("the Exchange Act"), and Rule 10b-5 promulgated thereunder, and Section 20(a) of the Exchange Act, by issuing materially false or misleading statements concerning PolyMedica's billing and marketing practices. The complaint alleges that these statements were false and misleading because defendants knew, or recklessly disregarded, that PolyMedica, through its Liberty Medical Supply division, was engaging in billing and marketing practices that do not comply with federal Medicare reimbursement regulations, including shipping diabetes testing supplies to customers without prior authorization or proper supporting documentation, in direct contradiction of a 1998 regulation banning such practices. The complaint further alleges that defendants' actions artificially inflated the price of PolyMedica common stock during the Class Period.

If you have any questions regarding this case or your rights or interests, please contact Sophie Horowitz, Paralegal, Shapiro Haber & Urmy LLP, 53 State Street, Boston, Massachusetts 02109, by calling (800) 287-8119, by sending a facsimile to (617) 439-0134, or by sending an email to cases@shulaw.com.