BALA CYNWYD, March 20, 2003 (PRIMEZONE) -- Law offices of Brodsky & Smith, LLC today announces that a securities class action lawsuit has been filed on behalf of shareholders who purchased the common stock of VaxGen, Inc. ("VaxGen" or the "Company") (Nasdaq:VXGN) between August 6, 2002 and February 26, 2003, inclusive (the "Class Period").
The case is pending in the United States District Court for the Northern District of California against the company and certain of its officers and directors. VaxGen is engaged in the development and commercialization of AIDSVAX, a vaccine designed to prevent infection or disease caused by HIV, the virus that causes AIDS. The complaint alleges that by issuing a series of materially false and misleading statements to the market during the Class Period regarding the progress and results of the clinical trials of AIDSVAX, defendants VaxGen, Lance K. Gordon (CEO) and Dr. Donald P. Francis (President) violated the Securities Exchange Act of 1934.
On February 26, 2003, the defendants disclosed to the investing community that the accuracy of their previous clinical reports regarding efficacy for non-caucasions was skewed because the Company had not taken the necessary "penalties" to account for the fact that less than 10% of the clinical trial participants were non-caucasians. As a result, the first-ever large scale trial of an HIV vaccine failed overall -- the vaccine did not show a statistical significance in cutting down HIV infection rates within the study population as a whole. Since November 18, 2002, VaxGen has suffered a total loss in market cap of approximately 85%.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased the stock listed above during the Class Period, you have certain rights. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice.
If you were a purchaser of this stock between August 6, 2002 and February 26, 2003 and want to discuss your legal rights, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact Marc L. Ackerman, Esquire or Evan J. Smith, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by e-mail at clients@brodsky-smith.com, or by calling toll free 877-LEGAL-90.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca