PHILADELPHIA, May 8, 2009 (GLOBE NEWSWIRE) -- The law firm of Spector, Roseman Kodroff & Willis, P.C. announces that a class action lawsuit was commenced in the United States District Court for the Southern District of California, on behalf of purchasers of the securities of Sequenom Incorporated ("Sequenom " or the "Company") (Nasdaq:SQNM) between June 4, 2008 through April 29, 2009, inclusive (the "Class Period").
Sequenom provides products, services, diagnostic testing, applications and generic analysis products that translate genomic science into solutions for biomedical research, translational research, molecular medicine and agricultural and livestock applications. The Complaint alleges that throughout the Class Period the defendants knew or recklessly disregarded that their public statements were false and misleading concerning Sequenom's noninvasive SEQureDx prenatal Down Syndrome test ("SEQureDx"), including that: (i) clinical trial tests and data concerning SEQureDx were not being conducted or monitored properly; (ii) SEQureDx did not offer verifiable, statistically significant improvement over competing tests; (iii) due to undisclosed problems with clinical trial test data and results, it was not feasible that Sequenom would be able to bring SEQureDx to the market in 2009; and (iv), Company employees were mishandling test data and results for the SEQureDx clinical trials. These false statements and omissions of material information caused the price of Sequenom to be artificially inflated.
Additionally, defendants took advantage of the Company's inflated stock price by issuing a Secondary Offering in June 2008, selling approximately 5.5 million shares of Sequenom stock to the public at a price of $15.50 per share for net proceeds of more than $85 million.
Finally, on April 29, 2009, Sequenom issued a press release disclosing that the expected launch of SEQureDx had been delayed due to the discovery of employee "mishandling" of research and development clinical trial data and results, which "raise[d] significant concerns regarding the integrity of that data." The Company further disclosed each and all of Sequenom's prior public statements concerning SEQureDx test data and results were superseded by the April 29, 2009, revelations and could no longer be relied upon. As a result of this news, shares of Sequenom collapsed $11.29 per share, or more than 75%, to close at $3.62 per share on April 30, 2009, on unusually heavy trading volume.
If you purchased Sequenom securities during the Class Period, you may, no later than June 30, 2009, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in Sequenom securities during the Class Period, please contact Spector, Roseman Kodroff & Willis, P.C. at classaction@srkw-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time. If you wish to join this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman or David Felderman toll-free at 888-844-5862 or e-mail at classaction@srkw-law.com. For more detailed information about the firm please visit its website at http://www.srkw-law.com.
Spector, Roseman Kodroff & Willis, P.C., with offices in Philadelphia, Pennsylvania and Washington, D.C., concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered through judgments and settlements on behalf of thousands of defrauded shareholders and companies.
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