NEW YORK, Feb. 16, 2005 (PRIMEZONE) -- Wechsler Harwood LLP today announced that it has filed a Federal Securities fraud class action suit on behalf of all purchasers of the common stock of Axonyx, Inc. ("Axonyx" or the "Company") (Nasdaq:AXYX) from June 26, 2003 to February 4, 2005, both dates inclusive (the "Class Period").
The action, entitled Taylor v. Axonyx, Inc., et al., Case No. (not yet assigned), is pending in the United States District Court for the Southern District of New York, and names as defendants, the Company, its Chairman and Chief Executive Officer, Marvin Hausman, and its Chief Operating Officer and President, Gosse Bruinsma. A copy of the complaint can be obtained from the Court or can be viewed on Wechsler Harwood web site at: www.whesq.com.
The complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's only viable drug candidate, Phenserine, a acetylcholinesterase ("AChE") inhibitor, failed to curb symptoms of Alzheimer's disease; (2) that the Company knew or recklessly disregarded the fact that Phenserine failed to partially block the effects of AChE, an enzyme that breaks down a neurotransmitter in the brain important for memory and cognition; (3) that as a consequence of the foregoing, the Company would not be able to commercialize Phenserine, currently its only potential source of revenue; and (4) that as a result the Company's positive statements about the development and potential approval of Phenserine were lacking in all reasonable basis when made.
On February 7, 2005, Axonyx announced that Phenserine did not achieve significant efficacy in Phase III Alzheimer's Disease trial. The news shocked the market. Shares of Axonyx fell $3.04 per share, or 62.68 percent, on February 7, 2005, to close at $1.81 per share.
If you are a member of the class described above, you may, not later than April 18, 2005, move the Court to serve as lead plaintiff of the class, if you so choose. 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. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.