NEW YORK, June 8, 2004 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) has filed a class action lawsuit against Genta Inc. ("Genta" or the "Company") (Nasdaq:GNTA) and two of the Company's senior officers, on behalf of all persons or entities who purchased the securities of Genta during the period between September 10, 2003 through May 3, 2004, inclusive (the "Class Period"). The case was filed in the United States District Court for the District of New Jersey.
The complaint alleges that Genta, a biopharmaceutical company focused on anticancer therapy, and the Company's Chairman Raymond P. Warrell, Jr., and President Loretta M. Itri, violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by misrepresenting the potential and effectiveness of its developmental cancer drug, Genasense, which artificially inflated the price of Genta's stock.
As alleged in the Complaint, throughout the Class Period, defendants repeatedly touted positive clinical trial results for Genasense and emphasized that the Food & Drug Administration ("FDA") was reviewing it for approval on an expedited basis. However, defendant's statements about the efficacy and safety of Genasense were without any reasonable basis in fact, such that there was no likelihood of FDA approval. It is alleged that the veracity and methodology of the testing were highly suspect.
On April 30, 2004, the market began to learn about the true picture when Reuters reported that an FDA Advisory Committee questioned the veracity and reliability of Genta's data regarding the effectiveness of Genasense. More revelations followed on May 3, 2004 about the problems with the Company's testing of the drug. In reaction to this announcement, Genta shares fell from $14.43 to $5.11 in the two trading days from April 30, 2004 to May 3, 2004 on very heavy volume.
If you purchased the securities of Genta during the Class Period, you have until July 5, 2004 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.