PHILADELPHIA, Oct. 28, 2003 (PRIMEZONE) -- Law Offices Bernard M. Gross, P.C. (http://www.bernardmgross.com) announces that a class action lawsuit was commenced in the United States District Court for the District of New Jersey against defendants Cambrex, James A. Mack, Douglas H. MacMillan, Claes Glassell, Salvatore J. Guccione, and Luke M. Beshar on behalf of all persons who purchased the securities of Cambrex Corporation ("Cambrex" or the "Company") (NYSE:CBM) between October 21, 1998 and July 25, 2003 (the "Class Period"), seeking remedies under the Securities Exchange Act of 1934 (the "Exchange Act").
The Complaint alleges that defendants violated the securities laws by issuing material misrepresentations between October 21, 1998 and July 25, 2003. On January 23, 2003, the Company shocked investors when it announced that it had overstated its net income by $5 million due to improper accounting from 1997 to 2001, inclusive, and that it would restate its financial results for the five-year period. Moreover, throughout the Class Period, defendants failed to disclose that the SEC had commenced an informal investigation into the Company's improper accounting. Additionally, the complaint alleges that during the Class Period, defendants issued false and misleading statements, including profit warnings, that failed to disclose the loss of a major contract between Cambrex and Transkaryotic Therapies, Inc. ("TKT") to manufacture the drug Replagal(tm) to treat Fabry disease, and the effect of the loss on the Company's financial prospects. The complaint alleges that as early as October 2002, defendants knew that it was more likely than not that the Company would lose the TKT contract as a result of FDA concerns with TKT's Replagal application, and that Cambrex would not be able to adequately and efficiently replace the business resulting from this likely loss. On January 14, 2003, defendants are alleged to have known that the loss of the contract was certain when TKT announced the FDA's rejection of the Replagal application. It was not until April 3, 2003, nearly three months later, that defendant revised downwards Cambrex's earnings and revenues guidance, precipitating a 37 percent drop in the price of Cambrex stock. However, at that time, Defendants never disclosed the TKT contract and the effect of its cancellation on its financial prospects. The "mystery contract" only became public knowledge on April 28, 2003 when it was disclosed by a trade publication. On July 25, 2003, the last day of the Class Period, defendants conceded during a conference call that they in fact knew about the loss of the TKT contract when they issued their profit warnings. On that same day, the market reacted swiftly and dramatically to this news, causing the price of Cambrex common stock to drop $5.09 or 20 percent from its previous day's close. On December 16, 2003 motions to serve as lead plaintiff may be filed. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Deborah R. Gross or Susan R. Gross of Law Offices Bernard M. Gross at 866-561-36600(toll-free) or via e-mail at susang@bernardmgross.com. If you are a member of this class, you can view a copy of the complaint as filed at http://www.bernardmgross.com. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions.
If you bought the securities of Cambrex between October 21, 1998 and July 25, 2003 and sustained damages, you may, no later than December 16, 2003, file a motion to be appointed lead plaintiff, if you so chose.
PLEASE CONTACT: Law Offices Bernard M. Gross, P.C. Susan R. Gross, Esq. Deborah R. Gross, Esq. 1515 Locust Street, Suite 200 Philadelphia, PA 19102 Telephone: 866-561-3600 (toll free) or 215-561-3600 E-mail: susang@bernardmgross.com or debbie@bernardmgross.com. Website: http://www.bernardmgross.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca