LOS ANGELES, Sept. 28, 2006 (PRIMEZONE) -- Yourman Alexander & Parekh LLP, a law firm with extensive experience in prosecuting claims for securities and consumer fraud, announces that a lawsuit seeking class action status has been filed on behalf of shareholders who purchased or otherwise acquired the securities of Connetics Corporation ("Connetics" or the "Company") (Nasdaq:CNCT) during the period June 28th, 2004 through May 3rd, 2006, inclusive (the "Class Period"). The matter is pending in the United States District Court for the Northern District of California.
The complaint alleges in part that defendants violated federal securities laws by failing to present the truth regarding the clinical studies and results of its potential new drug, Velac. More specifically, the complaint alleges that despite Connetics' knowledge of the high level of carcinogenic reactions to Velac in studies on mice, Connetics continues to promote Velac as a drug which would be approved by the FDA. The complaint further alleges that Connetics disseminated false or misleading financial results during the class period in order to artificially inflate its stock price, allowing defendants to reap millions of dollars from stock sales.
Since a class has not yet been certified, you are not represented by counsel in this matter. If you purchased or acquired Connetics securities from June 28th, 2004 through May 3rd, 2006, inclusive, and suffered a loss, the deadline to move for appointment as Lead Plaintiff is November 17, 2006. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The securities laws require the Court to consider the class member(s) with the largest financial interest, i.e. the largest financial loss, as presumptively the most adequate Lead Plaintiff(s). In order to serve as a Lead Plaintiff, you must meet certain legal requirements. While your ability to share in any recovery is not affected by your decision of whether or not to seek appointment as a Lead Plaintiff, Lead Plaintiffs are responsible for making important decisions which could affect the overall recovery for class members, including decisions concerning settlement.
If you: (i) wish to discuss this action, have information concerning this case, or acquired shares through your Connetics retirement account; (ii) have questions concerning this Notice or your rights or interests with respect to this litigation; or (iii) have any other potential matters that you would care to discuss, please contact Vahn Alexander or Behram Parekh of Yourman Alexander & Parekh LLP, 3601 Aviation Blvd., Suite 3000, Manhattan Beach, California 90266 by telephone, toll-free at (800) 725-6020, or by email to bparekh@yaplaw.com. There will be no obligation or cost to you concerning your inquiry. For more information please visit www.yaplaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.