LOS ANGELES, May 31, 2006 (PRIMEZONE) -- Yourman Alexander & Parekh LLP, a law firm with extensive experience in prosecuting claims for securities and consumer fraud, announces that a lawsuit seeking class action status has been filed on behalf of shareholders who purchased or otherwise acquired the securities of Discovery Laboratories, Inc. ("Discovery" or the "Company") (Nasdaq:DSCO) during the period March 16, 2004 through April 25, 2006, inclusive (the "Class Period"). The matter is pending in the United States District Court for the Eastern District of Pennsylvania.
The complaint alleges in part that defendants violated federal securities laws by issuing a series of false and misleading statements regarding the progress of FDA approval concerning its "lead product" Surfaxin. For example, it is alleged that during the proposed Class Period, defendants represented that FDA approval of Surfaxin was anticipated in April of 2006. However, it is further alleged that on April 25, 2006, when the Company ultimately revealed that the "stability" of the product, which is the ability to be stored for long periods of time without any change in efficacy or chemical profile, had never been achieved, and that there would be a "significant delay in the U.S. regulatory process," Discovery shares fell 53% to close at $2.20 per share.
Since a class has not yet been certified, you are not represented by counsel in this matter. If you purchased or acquired Discovery securities from March 16, 2004 through April 25, 2006, inclusive, and suffered a loss, the deadline to move for appointment as Lead Plaintiff is June 30, 2006. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The securities laws require the Court to consider the class member(s) with the largest financial interest, i.e. the largest financial loss, as presumptively the most adequate Lead Plaintiff(s). In order to serve as a Lead Plaintiff, you must meet certain legal requirements. While your ability to share in any recovery is not affected by your decision of whether or not to seek appointment as a Lead Plaintiff, Lead Plaintiffs are responsible for making important decisions which could affect the overall recovery for class members, including decisions concerning settlement. If you are only concerned with your ability to participate as a class member, you do not need to take any action at this time.
If you: (i) wish to discuss this action, have information concerning this case, or acquired shares through your Discovery retirement account; (ii) have questions concerning this Notice or your rights or interests with respect to this litigation; or (iii) have any other potential matters that you would care to discuss, please contact Vahn Alexander of Yourman Alexander & Parekh LLP, 3601 Aviation Blvd., Suite 3000, Manhattan Beach, California 90266 by telephone, toll-free at (800) 725-6020, or by email to valexander@yaplaw.com. There will be no obligation or cost to you concerning your inquiry. For more information please visit www.yaplaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca