COLCHESTER, Conn., Aug. 4, 2006 (PRIMEZONE) -- Today, Scott+Scott, LLC, filed a class action against NPS Pharmaceuticals Inc. (Nasdaq:NPSP) ("NPS" or the "Company") and certain officers and directors in the U.S. District Court for the District of Utah. The action is on behalf of NPS securities purchasers during the period March 30, 2004, through May 2, 2006, inclusive (the "Class Period"), for violations of the Securities Exchange Act of 1934. NPS develops certain drugs, including PREOS, an investigational drug proposed to treat osteoporosis as an alternative to such drugs as Forteo and Fosamax. The complaint alleges that defendants made false and misleading statements regarding the safety profile of PREOS. As a result, the price of the Company's securities was inflated during the Class Period, thereby harming investors.
If you purchased NPS securities during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than September 11, 2006. Any purported class member may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com, 800/404-7770, 860/537-5537) or visit the Scott+Scott website, www.scott-scott.com, for more information. There is no cost or fee to you.
According to the complaint, defendants made false and misleading statements during the Class Period, regarding the results of the Company's PREOS Phase III clinical studies. Defendants repeatedly insisted that PREOS had an excellent safety profile, while failing to reveal the serious adverse effects observed in PREOS-treated patients across the Company's Phase III clinical studies. Absent these false and misleading assertions, the Company would have been unable to market PREOS as an alternative therapy to FDA-approved treatments such as Forteo and Fosamax.
The complaint states that on May 2, 2006, the Company finally disclosed to investors that the U.S. Food and Drug Administration ("FDA") had determined that PREOS lacked an acceptable safety profile for the proposed indications. Worse, the Company reported that the FDA proposed that the Company perform a new clinical trial to address the FDA's concerns. As a result of this shocking news, the price of NPS Pharmaceuticals stock plunged more than 39%, falling from $8.21 per share on May 2, 2006, to close at $4.99 per share on May 3, 2006, on volume of 10.6 million shares, more than ten times average trading volume.
The plaintiff is represented by Scott+Scott, a firm with significant experience in prosecuting investor class actions. The firm dedicates itself to client communication and satisfaction and currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca