HARTFORD, Conn., June 20, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of California on behalf of all persons who purchased the common stock of Neurocrine Biosciences, Inc. ("Neurocrine") (Nasdaq:NBIX) between June 20, 2002 and June 23, 2006, inclusive (the "Class Period"). Also included are those who purchased in a Secondary Offering on September 11, 2003.
The Complaint charges Neurocrine and certain of its officers and directors with violations of Federal Securities laws. Specifically defendants disseminated false and misleading statements and concealed negative information concerning the progress toward FDA approval and the potential for market success of the Company's commercially viable 15 mg modified release formulation of Indiplon, a drug defendants claimed could be used for the treatment of insomnia. While Neurocrine stock traded at inflated levels, defendants arranged to sell and actually sold $198.7 million worth of shares in a secondary offering of Neurocrine stock.
On May 16, 2006, Neurocrine announced that it had received communication from the FDA indicating that the agency had determined that the 15 mg modified release formulation of Indiplon was not approvable at that time. The Company's shares fell $33.87 or 62% to $20.76 per share. Then on June 16, 2006, Neurocrine's shares tumbled another 20% after the Company announced that federal health regulators may require additional clinical tests for Indiplon. Finally, on June 22, 2006, Neurocrine announced Pfizer had terminated the companies' collaboration agreement for the development and marketing of Indiplon. On this news, Neurocrine shares fell to a close of $9.85 per share on June 23, 2006. During the Class Period, Neurocrine traded as high as $71.62.
If you are a member of the class, you may, no later than August 20, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.