CLEVELAND, Oct. 28, 2003 (PRIMEZONE) -- Landskroner - Grieco, Ltd. announces that it has filed a class action lawsuit in the United States District Court for the District of New Jersey, on behalf of purchasers of securities of Cambrex Corporation ("Cambrex" or the "Company"), (NYSE:CBM), between October 21, 1998 and July 25, 2003, inclusive (the "Class Period"). The suit is brought against Cambrex Corporation, James A. Mack, Douglas H. MacMillan, Claes Glassell, Salvatore J. Guccione, and Luke M. Beshar. The deadline for filing lead plaintiff papers is December 16, 2003. There are certain legal requirements to serve as lead plaintiff, which we would be happy to discuss with you. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to remain an absent class member. If you have questions about this case or wish to inquire about your rights in connection with this matter, you may contact Jack Landskroner or Debra Spaller at Landskroner - Grieco, Ltd. by calling toll free at 866-522-9500 or by emailing jack@landskronerlaw.com. The website is www.landskronerlaw.com.
The Complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Specifically, the Complaint alleges that, throughout the Class Period, Defendants issued numerous statements concerning Cambrex's profits, business operations and prospects without disclosing that it had overstated its net income by $5 million due to improper accounting from 1997 to 2001 and that it would be forced to restate its financial results for this five year period. Throughout the Class Period, Defendants also failed to disclose that the SEC had commenced an informal investigation into the Company's improper accounting practices. In addition, the Complaint alleges that, during the Class Period, Defendants issued false and misleading statements that failed to disclose the loss of a major contract between Cambrex and Transkaryotic Therapies, Inc. ("TKT") to manufacture the drug Replagal (TM) to treat Fabry disease, and the effect of the loss on the Company's financial prospects. The Complaint alleges that, as early as October of 2002, Defendants knew that it was more likely than not that the Company would lose the TKT contract as a result of FDA concerns with TKT's Replagal application, and that Cambrex would not be able to adequately and efficiently replace the business resulting from this likely loss. Despite additional and compelling notice that the TKT contract was likely to be lost, it was not until April 3, 2003, nearly three months later, that Defendants revised Cambrex's earnings and revenues guidance downward to account for the loss of the TKT contract. Once this news was disclosed, the market reacted swiftly and Cambrex's stock experienced a 37% drop in price. Defendants also never timely disclosed the TKT contract and the effect of its cancellation on its financial prospects. In fact, the existence of this contract only became known on April 28, 2003 when it was disclosed in a trade publication. On July 25, 2003, the last day of the Class Period, Defendants finally conceded that they knew about the loss of the TKT contract when they issued their profit warnings. The market again reacted swiftly and dramatically to this news, causing the price of Cambrex common stock to drop $5.09 or 20% from its previous day's close.
Landskroner - Grieco, Ltd. is a law firm whose practice areas include securities fraud and consumer class action litigation. Jack Landskroner is a board certified trial advocate by the National Board of Trial Advocacy and has been counsel of record in class action cases litigated across the county. For more information or questions about our pending action against Cambrex Corporation, or about Landskroner Grieco, Ltd., please contact Jack Landskroner at 866-522-9500 (toll-free), by e-mail at jack@landskronerlaw.com or at 1360 West 9th St., Suite 200, Cleveland, Ohio 44113 or visit its website at www.landskronerlaw.com.