Notice of Filing Securities Class Action against AtheroGenics, Inc., Michael Henos, Russell Medford, Mark Colonnese and Robert Scott.
The action is pending in the United States District Court for the Northern District of Georgia against defendants AtheroGenics, Michael Henos, Russell Medford, Mark Colonnese, and Robert Scott. The complaint alleges that throughout the Class Period, Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The class period begins on September 27, 2004 after Defendants announced the interim results of a CART 2 study of its AGI-1067 drug. The Complaint alleges, among other things, that the Company's statements regarding the CART 2 study of AGI-1067 were false and misleading because the interim results were incomplete, misleading and resulted from manipulation of the study. Plaintiffs claim that Defendants were motivated to manipulate the study to produce results that would induce a major pharmaceutical company to partner with it to complete the development and commercialization of AGI-1067. In response to Defendants' promotion of the misleading interim results, Atherogenics' stock price skyrocketed, rising 71% on unusually heavy trading volume.
On November 22, 2004, Defendants were forced to admit that the percentage of regression of plaque in patients using AGI-1067 was only slightly more than half as much as had been reported in the interim results Defendants had heavily promoted just two months earlier. In addition, Defendants revealed that the Phase IIb results showed that the relative difference between treatment with AGI-1067 and Standard of Care regime was not statistically significant. The market was stunned, and the stock price plummeted. Then, on January 3, 2005, the Company announced that it had decided to increase the number of patients in the Phase III study for the drug from 4000 to 6000 patients, that the study would be longer in duration, and that the Company needed to raise more cash to fund the study. On this news, the Company's stock fell again, this time 20% to close at $18.72 on unusually heaving trading. On January 5, 2005, the Company disclosed in a SEC filing that the SEC and NASD had commenced informal inquiries into the Company's September 27, 2004 announcement of interim results of the study.
If you bought the securities of AtheroGenics between September 27, 2004 and December 31, 2004 and sustained damages, you may, no later than March 7, 2005, 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 Milberg Weiss Bershad & Schulman LLP, or other counsel of your choice, to serve as your counsel in this action.
Milberg Weiss Bershad & Schulman LLP (www.milbergweiss.com) has offices in New York City, Boca Raton, Los Angeles, Delaware, Seattle and Washington, D.C. Please contact the Milberg Weiss website or any of these offices 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:
Steven G. Schulman One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 Phone number: (800) 320-5081 Email: firstname.lastname@example.org Or Maya Saxena email@example.com Joseph E. White firstname.lastname@example.org 5200 Town Center Circle, Suite 600 Boca Raton, FL 33486 Phone number: (561) 361-5000 Website: http://www.milbergweiss.com
|Printer friendly Cite/link Email Feedback|
|Date:||Jan 10, 2005|
|Previous Article:||Fitch Teleconf: U.S. Telecom/Cable Industry Review, 1/13 10AM EST/9AM CST.|
|Next Article:||EFI, Xerox Collaborate To Deliver New Printer For Graphic Arts Professionals.|