NEW YORK, Oct. 19, 2004 (PRIMEZONE) -- Wolf Popper LLP has filed a securities fraud lawsuit against Chiron Corporation ("Chiron") (NASDAQ:CHIR) and certain of its officers and directors, on behalf of all persons who purchased Chiron securities on the open market from July 23, 2003 through October 5, 2004. The action was filed in the United States District Court for the Northern District of California. The complaint can be obtained from the Court or viewed on Wolf Popper's website (www.wolfpopper.com).
The complaint alleges that during the Class Period, and in spite of early warning signs of problems at the Company's Liverpool manufacturing facility, defendants caused Chiron to issue numerous press releases and file documents with the SEC, touting the Company's financial performance and its ability to provide the U.S. market with Fluvirin for the 2004-2005 flu season. However, unbeknownst to the market, serious and widespread problems at the Company's Liverpool facility threatened Chiron's ability to provide the vaccine, thereby materially misleading the market as to the true financial condition of the Company.
The complaint further alleges that defendants failed to disclose: (a) that equipment and staff training at the Company's Liverpool plant were inadequate; (b) that the Company's vaccine manufacturing process was wrought with defects, bacterial contamination and sterility issues; (c) that the Company's Liverpool plant had systemic quality-control issues which the Company failed to address in a timely manner; (d) that the Company's Liverpool plant was not in compliance with U.S. and British health and safety regulations; and (e) that as a result of the above, the defendants' statements about being able to supply approximately 50 million vaccines to the United States was lacking in a reasonable basis when made.
Defendants' misrepresentations were revealed on October 5, 2004 when Chiron shocked the financial market with its announcement that it would not be supplying Fluvirin for the 2004-2005 influenza season due UK regulatory authorities suspending its manufacturing license because of problems in its Liverpool facility.
As a result of the news, shares of Chiron plummeted 16.38%, closing at $37.98 on October 5 on heavy trading volume, as compared to a closing price of $45.42 just the preceding day.
On October 11, 2004, it was disclosed for the first time that a June 2003 FDA inspection of the Company's Liverpool plant documented "deviations" from good manufacturing standards leading inspectors to conclude that Chiron would not necessarily be able to discover the problems or take steps to prevent them from reoccurring due to "systemic quality-control issues." On October 12, 2004, the Company revealed that it had received a subpoena from the U.S. Attorney's Office for the Southern District of New York requesting information about Fluvirin and the recent suspension of the Company's manufacturing license for its Liverpool facility. On October 13, 2004, Chiron confirmed that the SEC had opened an investigation surrounding the Company's handling of regulators' halt on its flu vaccine operation.
As a result of the foregoing disclosures, the Company's stock continued its downward slide, for a total decrease of 29.83% from the October 5 disclosure.
Wolf Popper LLP has extensive experience representing shareholders in class actions and has successfully recovered billions of dollars for defrauded investors and shareholders.
Class members who desire to be appointed a lead plaintiff in this action must file a motion with the Court no later than December 13, 2004. Class members who are interested in serving as a lead plaintiff in this action, or other persons who have questions or information regarding the prosecution of this action, are urged to call or write.