CHICAGO, April 29, 2002 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that a class action lawsuit is pending in the United States District Court for the Northern District of Illinois on behalf of purchasers of the securities of NeoPharm, Inc. (Nasdaq:NEOL) ("NeoPharm") between September 25, 2000 and April 19, 2002, inclusive (the "Class Period").
It has been alleged that NeoPharm and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period, thereby artificially inflating the price of NeoPharm common stock. Specifically, it has been alleged that NeoPharm issued a series of statements concerning its Liposome Encapsulated Praclitaxel ("LEP") product, and that the defendants:
* made materially false statements to Pharmacia Corp., NeoPharm's partner in the development and commercialization of LEP, in order to induce Pharmacia to participate and invest in LEP clinical trials; * failed to disclose to the investing public that Pharmacia was studying a different formulation of LEP such that Pharmacia's study results would not be applicable to NeoPharm's LEP approval; and * failed to disclose that all of Pharmacia's clinical trials failed to produce any positive benefits to patients, i.e., LEP was not effective in reducing the size of tumors or halting their growth and there was no evidence that LEP reduced the incidence and severity of certain side effects associated with paclitextl - the drug NeoPharm sought to improve with LEP.
Additionally, it is believed that certain individual defendants wrongfully sold shares of NeoPharm on the open market at artificially inflated prices, reaping proceeds of over $7 million.
After the markets closed on April 19, 2002, NeoPharm announced that it filed for arbitration to resolve a dispute with Pharmacia, and that in response, Pharmacia counter-claimed for breach of its agreement with NeoPharm concerning the nature of NeoPharm's initial disclosures. The markets reacted adversely to the news. NeoPharm's stock price dropped from $20.41 per share on April 19, 2002 (Friday) to $15.43 on April 22, 2002 (Monday) on volume of 2,863,000 - more than seventeen times Friday's volume.
If you purchased NeoPharm securities during the Class Period and if you meet certain other legal requirements, you may file a motion in the court where the lawsuit(s) has been filed to serve as a lead plaintiff. You must file your motion no later than June 25, 2002.
Much Shelist is currently investigating these claims. If you wish to discuss your rights and interests, you may contact Carol V. Gilden or Michael E. Moskovitz at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchlaw.com. Your e-mail should refer to NeoPharm.
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. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca