NEW YORK, May 16, 2005 (PRIMEZONE) -- The following statement was issued today by Squitieri & Fearon, LLP.
A Class Action has been filed in the United States District Court for the District of Maryland on behalf of investors who purchased the securities of Martek Biosciences Corporation (NYSE:MATK) ("Martek" or the "Company") during the period from December 9, 2004 through April 27, 2005 (the "Class Period").
This lawsuit claims that Martek and its officers misrepresented the Company's financial performance and failed to disclose significant problems with the Company's business in order to complete an $81 million stock offering. The claims are brought pursuant to the federal securities laws and allege that Martek and the officers who are named in the lawsuit violated the Securities Act of 1933 and the Securities Exchange Act of 1934. The lawsuit seeks to recover for investors who bought the Company's securities, including those investors who bought the Company's common stock in the January 2005 secondary offering.
On April 27, 2005 investors began to learn the truth when Martek issued a press release that revealed the significant shortfall in its sales and earnings. In response to this news Martek's shares fell from $60.08 per share to close at $32.49 on April 28, 2005.
Plaintiff is represented by the law firm of Squitieri & Fearon, LLP which has significant experience and expertise prosecuting class actions on behalf of investors and shareholders.
If you are a member of the class described above, you have until July 5, 2005 to seek to be appointed as a 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 lead plaintiff's claim is typical of the claims of other class members, and that the lead plaintiff 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.
If you wish to discuss this action or have any questions concerning this notice or your rights or interest, please contact Sara Mirsky, smirsky@sfclasslaw.com, or Stephen J. Fearon, Jr. of Squitieri & Fearon, LLP at (212) 421-6492, Stephen@sfclasslaw.com.