MINNEAPOLIS, April 1, 2005 (PRIMEZONE) -- The law firm of Lockridge Grindal Nauen, P.L.L.P. announces that it filed a class action lawsuit yesterday in the United States District Court for the Southern District of New York on behalf of all purchasers of the common stock of Axonyx Inc. ("Axonyx") (Nasdaq:AXYX), between June 26, 2003 and February 4, 2005, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act").
The complaint charges that defendants Axonyx, Inc., Marvin S. Hausman (CEO and Chairman) and Gosse B. Bruinsma (President, COO, and Vice President) violated sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5, by issuing a series of material misrepresentations to the market during the Class Period. The complaint alleges that Axonyx, a biopharmaceutical company, engaged in two late-stage Phase III clinical trials of Phenserine, an experimental drug for the treatment of mild to moderate Alzheimer's disease. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's only viable drug candidate, Phenserine, an acetylcholinesterase ("AChE") inhibitor, failed to curb symptoms of Alzheimer's disease; (2) that the Company knew or recklessly disregarded the fact that Phenserine failed to partially block the effects of AChE, an enzyme that breaks down a neurotransmitter in the brain important for memory cognition; (3) that as a consequence of the foregoing, the Company would not be able to commercialize Phenserine, currently its only potential source of revenue; and (4) that as a result the Company's positive statements about the development and potential approval of Phenserine were lacking in all reasonable basis when made.
On February 7, 2005, Axonyx announced that Phenserine did not achieve significant efficacy in Phase III Alzheimer's Disease trial. The news shocked the market. Shares of Axonyx fell $3.04 per share, or 62.68%, on February 7, 2005, to close at $1.81 per share.
Plaintiffs are represented by the law firm of Lockridge Grindal Nauen P.L.L.P. The firm has considerable experience in prosecuting securities class actions, 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 courts, which have appointed the firm to major positions in complex multi-district and consolidated litigations. Lockridge Grindal Nauen P.L.L.P. has offices in Minneapolis and Washington, D.C.
If you are a member of the class described above, you may, not later than April 18, 2005 move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Lockridge Grindal Nauen, or other counsel of your choice, to serve as your counsel in this action.
If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, please call or write:
Karen Riebel, Esq. Lockridge Grindal Nauen P.L.L.P. 100 Washington Avenue South, Suite 2200 Minneapolis, MN 55401 (612) 339-6900 khriebel@locklaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca