According to a press release a law firm is currently investigating securities fraud claims against Medicis Pharmaceutical Corp. (NYSE: MRX) on behalf of investors who purchased Medicis securities during the period between October 30, 2003 and September 23, 2008.

According to the press release the investigation focuses on potential claims against Medicis Pharmaceutical Corporation (NYSE: MRX) concerning possible securities violations in relation to Medicis announcement that the Company will likely need to restate its financial reports for fiscal 2003 through fiscal 2007, as well as the first two quarters of 2008.
On September 24, 2008, Medicis announced that the Companys Audit Committee had concluded that the Companys financial statements for the annual, transition and quarterly periods in fiscal years 2003 through 2007 and the first and second quarters of 2008 will likely need to be restated.

According to the press release on September 24, 2008, Medicis announced that its Audit Committee had concluded that the its financial statements for the annual, transition and quarterly periods in fiscal years 2003 through 2007 and the first and second quarters of 2008, will likely need to be restated and disclosed that investors should no longer rely on the effectiveness of Medicis internal control over financial reporting for those periods and that the Company was suspending its previously reported financial guidance for the remaining periods of 2008.
Medicis claimed the restatement was related to a modification in the Medicis s technical interpretation of the GAAP relating to sales return reserve calculations. Mediciss prior accounting method, with respect to sales return reserves, accrued returns at replacement cost rather than deferring the gross sales price, based on the Companys view of the economic impact of returns on its business and as a result of this news Mediciss stock price dropped from $17.92 on September 23, 2008 to $15.58 the next day, so the investigation.