BOSTON, Jan. 9, 2004 (PRIMEZONE) -- An investor has sued Biopure Corporation (Nasdaq:BPUR), accusing the biotechnology company of misleading the public about the prospects of regulatory approval for a new product, Berman DeValerio Pease Tabacco Burt & Pucillo announced today.
The lawsuit was filed January 8, 2004 in the U.S. District Court for the District of Massachusetts. The plaintiff seeks damages for violations of federal securities laws on behalf of all investors who bought Biopure common stock from March 5, 2003 through and including December 24, 2003 (the Class Period).
Berman DeValerio has represented investors in class actions for more than 20 years. To receive a copy of the complaint, you may contact the Court, call the firm at (800) 516-9926 or go to the firm's website at www.bermanesq.com.
The lawsuit claims that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder, including U.S. Securities and Exchange Commission (SEC) Rule 10b-5.
According to the complaint, Biopure artificially inflated its stock price by misrepresenting the prospects for U.S. Food and Drug Administration (FDA) approval of the marketing of the company's main product, Hemopure. The lawsuit says that the company knew by virtue of its ongoing communications with the FDA that regulators had strong reservations about Hemopure's safety but continued to publicly hype the product throughout the Class Period.
Hemopure is an investigational product for the treatment of acutely anemic surgical patients and for the elimination, delay or reduction of red blood cell transfusions in these patients. Hemopure is a human blood substitute derived from cow's blood, which acts like red blood cells to deliver oxygen to the body. Unlike donated blood, Hemopure does not have to be matched to a patient's blood type.
The truth about Hemopure began to emerge on December 24, 2003. After the close of the markets on Christmas Eve, Biopure announced a potential SEC inquiry for securities fraud and, for the first time, disclosed substantial problems with its Hemopure product and the FDA approval process.
In response to this announcement, Biopure common stock plummeted 14 percent from a closing price of $2.82 per share on December 24, 2003 to a closing price of $2.43 per share on December 26, 2003. Biopure's stock continued its decline on Monday, December 29, 2003, closing at $2.43 per share, far from the Class Period high of $8.25 per share.
The complaint names as defendants the company, Thomas A. Moore, Biopure's president and chief executive officer, and Carl W. Rausch, the company's co-founder, chief technical officer and former chief executive.
If you purchased Biopure Corporation common stock during the period of March 5, 2003 through and including December 24, 2003, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Patrick T. Egan, Esq. Jeffrey C. Block, Esq. One Liberty SquareBoston, MA 02109 (800) 516-9926 law@bermanesq.com
If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than March 1, 2004. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. You may also retain counsel of your choice. To be a member of the class, however, you need not take any action at this time. Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations, and consumer fraud. The firm consists of 35 attorneys in Boston, San Francisco, and West Palm Beach, Florida.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca