Faruqi & Faruqi, LLP Announces Investigation of Columbia Laboratories, Inc.
NEW YORK, Feb. 9, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Columbia Laboratories Inc. ("Columbia" or the "Company") (Nasdaq: CBRX).
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The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) the Company's PROCHIEVE product was not delivering desired results; (2) the Food & Drug Administration ("FDA") was unlikely to give approval to Columbia's PROCHIEVE product; and (3) contrary to Company representations, Columbia's future was not "very good" due to the efficacy issues with PROCHIEVE.
Columbia's much touted product "PROCHIEVE" is a gel intended to prevent preterm births. On December 14, 2011, the Company issued a press release highlighting the purported results of clinical trials that showed that PROCHIEVE "significantly reduces the risk of preterm birth and neonatal morbidity." Following this announcement, Columbia's stock increased in price significantly.
On January 17, 2012, however, the FDA released documents, including trial data, which evidenced PROCHIEVE's ineffectiveness. As a result, Columbia's stock price plunged by over 50%, to $1.10. Then, on January 20, 2012, the FDA Advisory Committee voted 13 to 4 against recommending PROCHIEVE, as the potential risks of the progesterone gel outweighed the benefits. As a result, Columbia's shares declined by an additional $0.874 per share to close at $0.706 per share on January 23, 2012.
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Take Action
If you purchased Columbia securities between December 6, 2010 and January 20, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/CBRX. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com or fmcconville@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Columbia's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
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Telephone: (877) 247-4292 or (212) 983-9330
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