CHICAGO, Feb. 5, 2002 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that class action lawsuits are pending in various federal courts on behalf of purchasers of the following securities during the periods set forth below:
* ImClone Systems, Inc. (Nasdaq:IMCL)
5/12/01-1/7/02
* PDI, Inc. (Nasdaq:PDII)
5/22/01-11/12/01
* Suprema Specialties, Inc. (Nasdaq:CHEZ)
8/15/01-12/21/01
Much Shelist is currently investigating potential claims against these companies. If you purchased securities in any of these companies during the periods listed and wish to discuss your rights and interests in any of these matters, or if you have information relevant to the alleged misconduct described below, you may contact Carol V. Gilden or Michael E. Moskovitz at Much Shelist by calling a toll-free number 1-800-470-6824, or by sending an e-mail to cgilden@muchlaw.com or mmoskovitz@muchlaw.com. Your e-mail should refer to the company or companies that affect you. A description of the investigations follows:
ImClone Systems, Inc. (Nasdaq:IMCL)
Much Shelist is investigating whether ImClone and certain of its officers and directors violated federal securities laws by making false and misleading statements regarding the ImClone's lead cancer drug, ERBITUX, or IMC-C225, and the prospects for its near-term approval. On December 28, 2001, ImClone's shares plummeted $11.15 after ImClone issued a press release disclosing that the Food and Drug Administration had rejected its filing of a Biologics License Application for ERBITUX. However, according to the January 4, 2002 publication of the "The Cancer Letter," during and before the Class Period, the FDA had repeatedly informed ImClone about the problems with the clinical trials. After trading as high as $75.45 per share during the Class Period, ImClone shares fell to an intra-day low of $33.85 per share on January 7, 2002.
Despite ImClone's representations during the Class Period that ERBITUX was a blockbuster drug that would become, "one of the important new drugs in the history of oncology," that ERBITUX would be approved shortly after the FDA Advisory Committee's February 2002 meeting and that clinical trial results exceeded FDA requirements, the FDA rejected ImClone's application. Much Shelist believes that these representations were materially false and misleading because, among other things: (1) ImClone's clinical trial was not designed to demonstrate that ERBITUX was responsible for the reported results, contrary to the FDA's directives to the Company; (2) the clinical trial on which ImClone based its application to the FDA was seriously flawed by protocol violations and was not "adequate and well controlled"; and (3) the safety database for ImClone's clinical trial was incomplete and contained inconsistencies and discrepancies. Much Shelist also is investigating whether ImClone made these allegedly false and misleading statements in part to convince Bristol-Myers Squibb Co. to purchase $1 billion of ImClone stock, of which approximately $150 million was tendered by ImClone insiders, and to persuade Bristol-Myers to invest an additional $1 billion cash in ImClone.
PDI, Inc. (Nasdaq:PDII)
Much Shelist is investigating whether PDI and certain of its officers and directors violated federal securities laws by making false and misleading statements regarding PDI's finances. During the class period, PDI traded as high as $97.83 per share. On November 12, 2001, PDI issued a press release stating that contrary to its earlier representations PDI lost $17.3 million and $1.24 per share in the third quarter of 2001 and expected further losses in the fourth quarter. On the following day, PDI's shares dropped as much as $11.40 per share below the prior day's closing price.
During the Class Period, PDI told investors:
* that its contract with Novartis to promote a hypertension drug
would produce earnings of $0.25 per share in the fourth quarter of
2001;
* that despite impending generic competition for the GlaxoSmithKline
("GSK") antibiotic, the GSK contract would produce earnings of
$0.35-$0.40 in the fourth quarter of 2001 and $0.30 per share in
2002; and
* that PDI would cancel the GSK contract if it did not contribute
$0.30 per share in earnings.
Much Shelist believes that these representations were materially false and misleading because, among other things: (1) earnings from the Novartis contract would remain unprofitable until PDI completed marketing activities which, as PDI's experience demonstrated, could not be completed until well into the fourth quarter of 2001; and (2) undisclosed minimum purchase requirements of the GSK contract were such that the contract could not produce earnings at or near $0.30 per share in 2002 and that PDI would be forced to terminate the contract, which would result in tens of millions of dollars of losses in the fourth quarter of 2001 and no earnings from that contract in 2002.
In the November 12 press release and a November 13 conference call, PDI revealed that its losses were due to the need to terminate the GSK contract and the fact that marketing activities for the Novartis contract had not been and would not be completed soon enough for that contract to produce earnings in the fourth quarter of 2001.
Suprema Specialties, Inc. (Nasdaq:CHEZ)
Much Shelist is investigating whether Suprema, Mark Cocchiola (Chief Executive Officer and President) and Steven Venechanos (Chief Financial Officer) issued a series of material misrepresentations to the market during the Class Period, causing the price of Suprema's stock to be artificially inflated. In August 2001, Suprema announced "record" results for the fourth quarter and year-end 2001. In November 2001, Suprema again announced record results for the first quarter of fiscal year 2002. On November 8, 2001, Suprema commenced a secondary offering of common stock, pursuant to a prospectus and registration statement filed with the Securities and Exchange Commission that contained allegedly misleading financial statements. In the secondary offering, Suprema, individual defendants Cocchiola and Venechanos, and others, sold a total of 4,050,000 shares at a price of $12.75 per share.
On December 21, 2001, only weeks after the secondary offering, Suprema issued a press release and announced that it was conducting an internal investigation into its previously filed financial statements and that defendant Venechanos had resigned from his position as Suprema's CFO. Immediately after the announcement, the Nasdaq Stock Market halted trading in Suprema common stock, pending its receipt of additional information on the matter. Suprema common stock has not resumed trading over the Nasdaq Stock Market.
If you purchased securities in any of these companies during the periods listed and if you meet certain other legal requirements, you may move the respective court where the lawsuit(s) has been filed to serve as a lead plaintiff. You must file your motion no later than:
* ImClone Systems, Inc. - March 8, 2002; * PDI, Inc. - March 15, 2002; and * Suprema Specialties, Inc. - March 18, 2002; and
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. section 78u-4).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.
More information on these and other class actions can be found on the Class Action Newsline at www.primezone.com/ca