NEW YORK, May 24, 2004 (PRIMEZONE) -- Notice is hereby given by Bull & Lifshitz, LLP that a Class Action lawsuit was filed in the United States District Court for the District of New Jersey on behalf of a class (the "Class") consisting of all persons who purchased or otherwise acquired securities of Genta, Inc. ("Genta" or the "Company")(Nasdaq:GNTA) between September 10, 2003 and May 3, 2004, inclusive (the "Class Period"). A copy of the Complaint is available from the court or from Bull & Lifshitz LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (212) 213-6222 or by email at: http://www.nyclasslaw.com/infopackage.html.
The Complaint charges Genta and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' omissions and material misrepresentations concerning Genta's operations and financial prospects artificially inflated the Company's stock price, inflicting damages on investors. Genta is a biopharmaceutical company dedicated to the identification, development and commercialization of novel drugs for cancer and related diseases. The Complaint alleges that defendants failed to disclose and/or falsely represented to the investing public that Genta's anti-cancer drug, Genasense, did not appear to be associated with serious adverse reactions in its Phase 3 clinical trial. In fact, defendants knew that the use of Genasense was associated with increased toxicity and discontinuation due to adverse events and that Food & Drug Adminsitration ("FDA") approval of the Genasense New Drug Application was unlikely because the increased toxicity and adverse events associated with the use of Genasense outweighed its marginal benefits.
On April 30, 2004, Genta announced that the FDA had posted on its website briefing documents for the FDA's Oncologic Drugs Advisory Committee meeting on May 3, 2004, which suggested that Genasense would fail to win FDA approval. News of this shocked the market. On April 30, 2004, Shares of Genta fell $5.83 per share, or 40%, to close at $8.60 per share. On May 3, 2004, Genta, in fact, failed to win FDA Panel support for Genasense, the news of which sent shares of Genta falling another $3.49 per share, or 40.5%, to close that day at $5.11. Plaintiff seeks to recover damages on behalf of Class members and is represented by Bull & Lifshitz LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than July 2, 2004, 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 your rights or interests with respect to these matters, please contact Joshua M. Lifshitz, Esquire, of Bull & Lifshitz LLP, 18 East 41st Street, NY, NY 10017 or by telephone at (212) 213-6222 or by e-mail to: (counsel@nyclasslaw.com).
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca