PHILADELPHIA, May 2, 2006 (PRIMEZONE) -- Law Offices Bernard M. Gross, P.C. (http://www.bernardmgross.com) announces that a class action lawsuit, numbered 06-1820, was commenced in the United States District Court for the Eastern District of Pennsylvania before the Honorable Stewart Dalzell, on behalf of purchasers of the common stock of Discovery Laboratories Inc. ("Discovery Labs" or the "Company") (Nasdaq:DSCO) between December 28, 2005 and April 25, 2006, inclusive (the "Class Period").
The action is pending against defendants Discovery Laboratories, Inc. and Robert J. Capetola, President and Chief Executive Officer. A copy of the Complaint is available from the Court or can be viewed on the Law Offices Bernard M. Gross, P.C. website at www.bernardmgross.com or contact us by phone at 866-561-3600 (toll-free) or by email at susang@bernardmgross.com.
The Complaint charges Discovery Labs and Robert J. Capetola with violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 by issuing a series of materially false and misleading statements to the market during the Class Period. As alleged in the Complaint, defendants made misrepresentations and/or omissions regarding the progress of U.S. regulatory approval for its self-described "lead product" Surfaxin. Throughout the Class Period, defendants repeatedly represented that they anticipated FDA approval of Surfaxin in April 2006. On April 25, 2006, the Company revealed that Surfaxin's "stability" (its ability to be stored for long periods without any change in its efficacy or its chemical profile) had not been achieved and that such failure would cause a "significant delay in the U.S. regulatory process." The Company admitted that although it had been testing the "production validation batches" periodically for "stability," stability had never been achieved. The market reacted negatively to this shocking news. The price of Discovery Labs (Nasdaq:DSCO) common stock sank 53% to close at $2.20.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Law Offices Bernard M. Gross, P.C., which has significant experience and expertise in prosecuting class actions.
If you purchased the stock of Discovery Laboratories, Inc. (Nasdaq:DSCO) during the period December 28, 2005 and April 25, 2006, you may no later than June 30, 2006, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or rights or interests with respect to these matters,
Law Offices Bernard M. Gross, P.C. Susan R. Gross, Esq. Deborah R. Gross, Esq. The Wanamaker Bldg 100 Penn Sq. East, Suite 450 Philadelphia, PA 19103 Telephone: (866) 561-3600 (toll free) or 215-561-3600 E-mail: susang@bernardmgross.com or debbie@bernardmgross.com. Website: http://www.bernardmgross.com
Law Offices Bernard M. Gross, P.C. has significant experience and expertise in prosecuting class actions. Recently filed securities cases include the following:
Company Symbol Purchase during Lead Plaintiff
Class Period Filing Deadline
Astea Int'l,
Inc. ATEA-NASDAQ 5/11/05 -- 5/31/06 6/12/06
GMH
CommunitiesTrust GCT-NYSE 10/28/04 -- 3/10/06 6/05/06
Northfield
Labs, Inc. NFLD-NASDAQ 2/20/04 -- 2/21/06 5/16/06
Sea
Containers, Ltd. SCR-A-NYSE 3/15/04 -- 3/24/06 5/30/06
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.