NEW YORK, Dec. 30, 2002 (PRIMEZONE) -- Sepracor Inc. (Nasdaq:SEPR) and certain of its senior officers have been charged with violations of the federal securities laws by Wolf Popper LLP in a class action lawsuit brought in the United States District Court for the District of Massachusetts. The lawsuit was brought on behalf of all persons who purchased Sepracor common stock on the open market during the period beginning on May 17, 1999 through March 6, 2002, inclusive.
Plaintiff alleges that during the Class Period defendants made materially false and misleading statements about the safety of Sepracor's new allergic rhinitis treatment drug, Soltara, and the adequacy of safety data to support an approvable New Drug Application ("NDA") for Soltara. Specifically, the defendants: (a) omitted to disclose that extended accumulation and retention of Soltara in tissues was observed during preclinical studies; (b) omitted to disclose that Soltara had caused hepatic phospholipidosis and cardiomyopathy in animals during preclinical studies; (c) misrepresented that clinical studies for the Soltara NDA provided adequate safety data and assurance that Soltara does not cause QTc prolongation (delayed or irregular heartbeats) in humans; and (d) falsely touted the safety profile of Soltara and the approvability of the Soltara NDA by March 2002, notwithstanding the above.
As a result of the defendants' material misrepresentations and omissions, the market price of Sepracor common stock was artificially inflated during the Class Period, trading as high as $137.39 per share.
On March 7, 2002, Sepracor shocked the market by issuing a press release, disclosing that the U.S. Food and Drug Administration ("FDA") would issue a "not approvable" letter for the Soltara NDA due to the FDA's concerns about observed adverse Soltara accumulation and cardiovascular events, and the inadequacy of safety data in the Soltara NDA. Immediately and on the same day, Sepracor common stock price plummeted by $27.63 per share, or 58.45%, to $19.64 per share -- resulting in substantial loss for Sepracor shareholders.
Wolf Popper LLP has extensive experience representing shareholders in class actions and has successfully recovered billions of dollars for defrauded investors and shareholders. The reputation and expertise of the firm in shareholder and other class action litigation have been repeatedly recognized by the courts, which have appointed the firm to major positions in complex multi-district and consolidated litigations.
Any member of the proposed class who desires to be appointed lead plaintiff in this action must file a motion with the Court no later than January 19, 2003. Class members must meet certain legal requirements to serve as a lead plaintiff. If you have questions or information regarding this action, or if you are interested in serving as a lead plaintiff in this action, you may call or write:
Robert C. Finkel, Esq., WOLF POPPER LLP 845 Third Avenue New York, NY 10022-6689 Telephone: 212.451.9620 Toll Free: 877.370.7703 Facsimile: 212.486.2093 or 877.370.7704 E-Mail: IRRep@wolfpopper.com Website: http://www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca