BALA CYNWYD, Pa., April 24, 2002 (PRIMEZONE) -- A shareholder sued ViroPharma, Inc. ("ViroPharma" or the "Company") (Nasdaq:VPHM) claiming that the company misled investors about its business and financial condition, as alleged in a complaint filed by the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the Eastern District of Pennsylvania and seeks damages for violations of federal securities laws on behalf of all investors who bought ViroPharma, Inc. securities between July 13, 1999 and March 19, 2002 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of ViroPharma, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our Website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that ViroPharma, Inc. made highly positive statements regarding the Company's Drug Picovir. ViroPharma represented that its growth was contingent on U.S. Food and Drug Administration ("FDA") approval of its' Picovir (pleconaril) drug as a cure for the common cold. ViroPharma informed the investing public of every positive part of the Picovir studies. The Company insisted that treatment was well tolerated and that adverse events were comparable to placebo in the trials. The Company issued numerous press releases which praised the effectiveness of Picovir and minimized and concealed the potential obstacles to FDA approval.
However, on March 19, 2002, trading on the stock was halted as the Company revealed that a FDA advisory committee voted 15-0 against approval of Picovir because of safety concerns. On March 20, 2002, after the resumption of trading, shares of ViroPharma plummeted 60 percent. The 15-member FDA committee had questions about the safety of the drug in women taking oral contraceptives and in the elderly. In addition, the committee asked for broader studies on the drug's benefits with minorities, the elderly, patients with asthma and chronic bronchitis, children, and more about the drug's interaction with other medications. They also expressed concern that the drug may develop drug-resistant cold germs. The FDA pointed out that the drug had several significant side effects, with headache the most frequently cited.
If you purchased ViroPharma, Inc. securities between July 13, 1999 and March 19, 2002, you may be a member of the class and have until May 26, 2002 to move the court to become a lead plaintiff. To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our Website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca