PHILADELPHIA, Sept. 21, 2005 (PRIMEZONE) -- Law Offices Bernard M. Gross, P.C. (Http://www.bernardmgross.com) announces that a class action, numbered 05cv4983, was commenced today in the United States District Court for the Eastern District of Pennsylvania, against defendants Isolagen, Inc. (AMEX:ILE) and Frank M. Delape (Chairman and interim CEO), Robert J. Bitterman (former "CEO"), Michael Macaluso (former Founder, CEO, President, and Director), Jeffrey W. Tomz (Principal Financial and Accounting Officer and Secretary), Olga Marko (Founder and former Senior Vice President and Director of Research), William K. Boss, Jr. (Founder and former Manager of International Operations and Director), and Michael Avignon (Founder and former Director) on behalf of all persons who purchased the common stock of Isolagen between March 3, 2004 and August 1, 2005, (the "Class Period"), including purchasers of Isolagen stock issued in connection with and traceable to Isolagen's offering ("June 2004 Offering") seeking remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). The case is presiding before the Honorable Ronald L. Buckwalter.
The complaint charges Isolagen and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Isolagen specializes in the development and commercialization of autologous cellular therapies for soft and hard tissue regeneration (the "Isolagen Process"). Autologous cellular therapy utilizes a process whereby a patient's own cells are extracted, allowed to multiply, and then injected into the patient. In January 2003, defendants began phase I clinical trials aimed at demonstrating the safety and efficacy of using the Isolagen Process to treat dermal defects.
The complaint alleges that without solid clinical data developed under controlled conditions, the data gathered in the clinical trials would never meet the FDA's "adequate and well-controlled" criteria for acceptable clinical trials and the Company's business plan would lack credibility to the investment community. Defendants' own internal testing showed the Isolagen Process had demonstrated nowhere near the efficacy required to obtain FDA approval, which was needed to make the Company profitable. However, during the Class Period, defendants touted the efficacy of the Isolagen Process both for dermal and dental treatments, running up the Company's stock price to a Class Period high of $12 per share on April 2, 2004.
Then, on August 5, 2005, the Company shocked the market by disclosing that the preliminary results from its phase III clinical trial of the Isolagen Process for the treatment of contour deformities (wrinkles) had not met all four primary end points and that neither of the two dermal studies had achieved independent statistical significance. As a result of this announcement, the Company's stock price plummeted more than 45 percent, from $5.50 per share to below $3 per share, on very high volume.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Deborah R. Gross or Susan R. Gross of Law Offices Bernard M. Gross at 866-561-3600 (toll-free) or via e-mail at susang@bernardmgross.com. If you are a member of this class, you can view a copy of the complaint as filed at http://www.bernardmgross.com. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you bought the common stock of Isolagen, Inc. between March 3, 2004 through August 1, 2005, traceable to Isolagen's offering ("June 2004 Offering") and sustained damages, you may, no later than October 17, 2005, file a motion to be appointed lead plaintiff, if you so choose. Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions and has recently filed cases in the following:
Lead Plaintiff
Company Symbol Class Period Filing Deadline
Arbinet- ARBX - Nasdaq traceable to its 11/01/05
thexchange 12/16/04 IPO
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.