RADNOR, Pa., March 23 /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 Northern District of Illinois on behalf of all securities purchasers of Northfield Laboratories Inc. (“Northfield”) or the “Company” between February 20, 2004 and February 21, 2006 inclusive (the “Class Period”).
If you wish to discuss this action or have any questions concerning this notice, 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 Northfield, and Steven A. Gould with violations of the Securities Exchange Act of 1934. 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. More specifically, the Complaint alleges: (1) that PolyHeme, the Company’s sole product, posed serious risks to users of the product; (2) specifically, the Company failed to disclose that at trial PolyHeme was linked to heart attacks, heart rhythm aberrations, pneumonia and death; (3) that these problems were statistically significant, meaning that there was minimal likelihood that they occurred by chance; and (4) that defendants concealed these facts in order to preserve PolyHeme’s ability to continue testing so that the product could be approved by the FDA enabling Northfield to capture and control the lucrative blood substitute market.
On February 22, 2006, a story in The Wall Street Journal revealed that ten of 81 patients who received the fake blood suffered a heart attack within seven days, and two of those died. None of the 71 patients in the trial who received real blood were found to have had a heart attack. The markets reaction to the disclosure was swift. On February 22, 2006, shares of Northfield fell to $11.64 per share, down from $12.23 per share. By February 24, 2006, shares of Northfield declined to $10.54 per share.
On March 10, 2006, The Wall Street Journal revealed that the federal Office for Human Research Protections has expressed “urgent ethical concerns” to the Food and Drug Administration about the conduct of Northfield’s study. In reaction to this development, shares of Northfield fell $1.15 per share, or 10.31 percent, to close, on March 10, 2006, at $10.00 per share.
Then, on March 16, 2006, Northfield announced that it had received an informal request to voluntarily provide certain information to the staff of the SEC’s Midwest Regional Office relating to the clinical development of its PolyHeme product for elective surgery. On this news, Northfield’s stock declined another $0.33 per share to close at $9.65 per share.
Finally, on March 20, 2006, The Wall Street Journal revealed that three medical ethics professors, in an open letter to research boards at hospitals where a blood substitute is being studied without patients’ consent, said the research “fails to meet ethical and regulatory standards.” In reaction to this latest development, Northfield’s stock shed another $0.37 per share, to close, on March 20, 2006, at $9.57 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 May 19, 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, Esquire Richard A. Maniskas, Esquire 280 King of Prussia Road Radnor, PA 19087 1-800-299-7706 (toll-free) or 1-610-667-7706 Or by e-mail at info@sbclasslaw.com
Schiffrin & Barroway, LLP
CONTACT: Darren J. Check, Esquire, or Richard A. Maniskas, Esquire, bothof Schiffrin & Barroway, LLP, +1-800-299-7706, or +1-610-667-7706, e-mail:info@sbclasslaw.com
Web site: http://www.sbclasslaw.com/
