SAN FRANCISCO, Dec. 19, 2001 (PRIMEZONE) -- A shareholder class action now before a federal court alleges that XOMA Ltd. (Nasdaq:XOMA) misled the public about the progress of an experimental psoriasis drug, the law firm of Berman DeValerio Pease Tabacco Burt & Pucillo announced today.
The complaint was filed in the U.S. District Court for the Northern District of California as C-01-4256. It seeks damages for violations of federal securities laws on behalf of all investors who bought XOMA stock between May 24, 2001 and October 4, 2001 (the Class Period), including those persons who purchased shares in or traceable to XOMA's June 26 offering of 3 million shares.
Berman DeValerio has represented investors in class actions for nearly two decades. To review the complaint and learn more about becoming a lead plaintiff, visit our Website at www.bermanesq.com.
The complaint says the Berkeley-based biopharmaceuticals manufacturer issued false and misleading statements about its plans to file a Food and Drug Administration (FDA) application for Xanelim, a psoriasis drug XOMA was co-developing with Genentech Inc.
For investors in XOMA, successful development of Xanelim was pivotal. In 20 years, the company had never turned a profit or brought a drug to market.
Filing the application, known as a Biologics Licensing Application (BLA), was an important step in gaining FDA approval for the drug. XOMA repeatedly said it planned to file the BLA with the agency by the end of 2001 or the first quarter of 2002.
That timetable would have put XOMA and Genentech in a neck-and-neck race with Biogen, Inc. to be the first manufacturer to market an effective treatment for psoriasis. The winner would gain a significant advantage in a lucrative market that is expected to reach $2 billion by the year 2005.
In fact, XOMA and Genentech were nearly a year behind Biogen. When XOMA told investors it planned to file its BLA by the end of 2001, it knew -- but failed to disclose -- that a change in its manufacturing process would necessarily delay filing until after that date.
On October 4, 2001, XOMA admitted that it would not file the BLA until the summer of 2002 at the earliest. The next day the price of XOMA stock fell as low as $6.40 from a closing price of $9.76 per share a day earlier.
If you purchased XOMA Ltd. common stock during the period May 24, 2001 through October 4, 2001, or purchased shares in or traceable to XOMA's June 26 offering of 3 million shares, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests:
Steven D. Morris, Esq. Jennifer Abrams, Esq. Michael G. Lange, Esq. One Liberty Square 425 California Street, Suite 2025 Boston, MA 02109 San Francisco, CA 94104 (800) 516-9926 (415) 433-3200 law@bermanesq.com law@bermanesq.com
You may also visit us at our website at www.bermanesq.com.
If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than January 14, 2002. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. To be a member of the class, however, you need not take any action at this time, and you may retain counsel of your own choice. If you decide to seek appointment as lead plaintiff, you may also retain counsel of your choice.
Berman DeValerio Pease Tabacco Burt & Pucillo (www.bermanesq.com) prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations and consumer fraud. The firm consists of 30 attorneys in Boston, San Francisco and West Palm Beach, Florida.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.