RADNOR, Pa., May 8 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all securities purchasers of Discovery Laboratories, Inc. (“Discovery” or the “Company”) from December 28, 2005 through April 25, 2006, inclusive (the “Class Period”).
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The Complaint charges Discovery and certain of its officers and directors with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that problems regarding the manufacturing of Surfaxin existed; (2) specifically, that the Company failed to disclose that manufacturing problems with Surfaxin caused instability with the drug’s active ingredient; (3) that the FDA’s concerns regarding Surfaxin’s stability would result in a significant delay in the drug’s approval; and (4) as a result of the above, the Company’s statements concerning Surfaxin were lacking in any reasonable basis when made.
Throughout the Class Period, Discovery repeatedly asserted that it anticipated that Surfaxin would receive U.S. regulatory approval in April 2006. On April 24, 2006, Discovery announced that U.S. regulatory approval of Surfaxin was being delayed over manufacturing problems. Specifically, Discovery reported that Surfaxin’s ability to be stored for extended periods of time without change in its efficacy or chemical profile, or stability, had not been achieved. As a result of this failure, the U.S. regulatory process would be significantly delayed. The Company acknowledged that stability had never been achieved for the drug. On this news, shares of Discovery dropped $2.49, or 53 percent, to close, on April 25, 2006, at $2.20 per share.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com.
If you are a member of the class described above, you may, not later than June 30, 2006, move the Court to serve as lead plaintiff of the class, if you so choose. 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 Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin & Barroway, LLP Darren J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll-free) or 1-610-667-7706 Or by e-mail at info@sbclasslaw.com
Schiffrin & Barroway, LLP
CONTACT: Darren J. Check, Esq. or Richard A. Maniskas, Esq., Schiffrin &Barroway, LLP, +1-888-299-7706 (toll-free) or +1-610-667-7706, orinfo@sbclasslaw.com
Web site: http://www.sbclasslaw.com/
