BALA CYNWYD, Pa., Jan. 29, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
A securities class action lawsuit pending in the U.S. District Court for the Southern District of New York claims that ImClone Systems, Inc. (Nasdaq:IMCL) violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Plaintiff seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of all investors who bought ImClone Systems, Inc. securities between expanded period May 12, 2001 and January 18, 2002 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of ImClone Systems, Inc and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our Website at www.sbclasslaw.com.
The complaint alleges that ImClone Systems, Inc. issued multiple press releases highlighting the successful progress of its "Fast-Track" application to the U.S. Food and Drug Administration ("FDA") for approval of IMC-C225, its blockbuster drug used for the treatment of colorectal cancer and also known as Erbitux, and the positive impact that the drug's approval would have on the Company's revenues. As alleged in the Complaint, these statements were materially false and misleading because, among other things, (i) defendants failed to comply with the FDA's requirements for filing the "Fast Track" application for approval of Erbitux; and (ii) as such, defendants knew, or should have known, that their deficient application would be rejected and would thus negatively impact the Company's future earnings. The Complaint further alleges that defendants filed their application, despite lacking the skill and expertise to make a proper filing, in order to convince Bristol-Myers Squibb Co. ("Bristol-Myers") to purchase at least $1 billion in ImClone stock, of which approximately $150 million was tendered by ImClone insiders, including the individual defendants, and to convince Bristol-Myers to make an additional $1 billion cash investment in the Company.
On Friday evening, December 28, 2001, ImClone disclosed that the FDA had refused to accept the Company's deficient and defective application for approval of Erbitux, confirming almost two weeks of speculation that had already driven down the price of ImClone's stock by 21%. The price of ImClone's stock fell sharply again on January 9, 2002, when executives from ImClone admitted that the Company had submitted a faulty application for Erbitux. As a result of Defendants false and misleading statements during the Class Period, the price of ImClone common stock traded at artificially inflated prices.
If you purchased ImClone Systems, Inc. securities during the period of May 12, 2001 and January 18, 2002, you may be a member of the class and have until March 8, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our Website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca