NEW YORK, May 14, 2004 (PRIMEZONE) -- The law firm of Seeger Weiss LLP announces that a class action lawsuit was filed on May 11, 2004, on behalf of purchasers of the securities of Genta, Inc. ("Genta" or the "Company") (Nasdaq:GNTA) between February 24, 2003 and May 3, 2004, inclusive, (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). A copy of the complaint filed in this action is available from the Court, or can be obtained on a complimentary basis from the offices of Seeger Weiss.
The action is pending in the United States District Court for the District of New Jersey, against defendants Genta, Raymond P. Warrell, Jr. (President, CEO, Director) and William P. Keane (Chief Financial Officer).
The complaint alleges that during the Class Period defendants artificially inflated the price of Genta stock by concealing material information about the safety and efficacy of Genasense, a potential blockbuster anticancer agent that was being reviewed for approval by the Food and Drug Administration ("FDA"). The complaint alleges that: (i) defendants did not maintain sufficient documentation to support the Company's repeated claims that Genasense could demonstrate an "overall survival benefit"; (ii) the Genasense data submitted by the Company to the FDA was unclear, and that much of the improvement noted by the Company in its studies was not documented and could not be isolated and identified; (iii) defendants lacked a good faith basis to claim that approval of Genasense was reasonably foreseeable; and (iv) as a result of the deficiencies in the Genasense FDA application, it was not foreseeable at any time during the Class Period that Genta would be able to achieve profitability in the near-term. On April 30, 2004, Genta shareholders learned that the FDA advisory panel had voted 13-3 in favor of recommending that the FDA reject the Genasense application for Genta's failure to demonstrate that Genasense's benefits outweighed its risks and side effects. That day, the FDA issued a statement regarding Genasense stating the advisory panel determined that Genta had failed to demonstrate either that Genasense performed as promised or that the Company maintained the data to support its claims of efficacy. In reaction to this announcement, the price of Genta common stock plummeted, falling almost $6.00 per share, to below $8.45 per share. In the days that followed shares of the Company continued to trade lower as investors digested the news, trading to below $5.00 by May 4, 2004.
If you bought the securities of Genta between February 24, 2003 and May 3, 2004 and sustained damages, you may, no later than July 5, 2004, request that the Court appoint you as lead plaintiff. 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. You may retain Seeger Weiss LLP, or other counsel of your choice, to serve as your counsel in this action.
Seeger Weiss is a New York based firm, active in major litigations pending in federal and state courts throughout the United States. Seeger Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others. Please contact the Seeger Weiss at our toll-free number for more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys:
Stephen A. Weiss, Esq.
David R. Buchanan, Esq.
Eric T. Chaffin, Esq.
One William Street STE 1000
New York, NY, 10004
Phone number: (877) 539-4125
Email: sweiss@seegerweiss.com
dbuchanan@seegerweiss.com
echaffin@seegerweiss.com
Website: http://www.seegerweiss.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca