BOCA RATON, Fla., April 4, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that it has filed a class action in the United States District Court for the Eastern District of Pennsylvania on behalf of all individuals and institutional investors that purchased the common stock of Cell Pathways, Inc. ("Cell Pathways" or the "Company") (Nasdaq:CLPA) between October 27, 1999 and September 22, 2000, inclusive (the "Class Period").
The complaint charges that the Company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading information about the Company's principal drug, Aptosyn, which was tested in clinical trials as a treatment for familial adenomatous polyposis ("FAP"). As a result of these false and misleading statements the Company's stock traded at artificially inflated prices during the class period. Specifically, the complaint alleges that defendants misrepresented evidence of the safety and efficacy of Aptosyn as a treatment for FAP. Furthermore, defendants stated that Aptosyn was a chemopreventive and an alternative to surgery for FAP patients, causing regression of polyps in FAP patients. Defendants further stated that it had shown effects across the patients' entire colorectum, where there was no evidence from the Company's controlled clinical trials to support these claims. Additionally, defendants represented that competing drugs caused organ toxicities, while Aptosyn did not. On September 22, 2000, Cell Pathways announced that the U.S. Food & Drug Administration refused to approve Aptosyn as a treatment for FAP, which occurs when the clinical trial evidence of the efficacy and safety of a drug is inadequate. Subsequently, the price of Cell Pathways' common stock fell almost 70%.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you must meet certain requirements and take appropriate action by May 15, 2001. You are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Sue Null, Charlie Gastineau or Jackie Addison Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca