BALA CYNWYD, Pa., Jan. 10, 2002 (PRIMEZONE) -- A pending class action charges XOMA, Ltd. (Nasdaq:XOMA) with misleading investors about its plans to file a Food and Drug Administration (FDA) application for Xanelim, an experimental psoriasis drug XOMA was co-developing with Genentech Inc. according to the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the Northern District of California. Plaintiff seeks damages for violations of the federal securities laws on behalf of all investors who purchased XOMA, Ltd. securities between May 24, 2001 and October 4, 2001 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of XOMA, Ltd. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at www.sbclasslaw.com.
The complaint alleges that for investors in XOMA, successful development of Xanelim was pivotal. In 20 years, the company had never turned a profit or brought a drug to market. Filing the application, known as a Biologics Licensing Application (BLA), was an important step in gaining FDA approval for the drug. XOMA repeatedly said it planned to file the BLA with the agency by the end of 2001 or the first quarter of 2002. That timetable would have put XOMA and Genentech in a neck-and-neck race with Biogen, Inc. to be the first manufacturer to market an effective treatment for psoriasis. The winner would gain a significant advantage in a lucrative market that is expected to reach $2 billion by the year 2005.
In fact, XOMA and Genentech were nearly a year behind Biogen. At the time XOMA told investors it planned to file its BLA by the end of 2001, it knew but failed to disclose that a change in its manufacturing process would necessarily delay filing until after that date.
On October 4, 2001, XOMA admitted that it would not file the BLA until the summer of 2002 at the earliest. The next day the price of XOMA stock fell as low as $6.40 from a closing price of $9.76 per share a day earlier.
If you purchased XOMA, Ltd. securities during the period of May 24, 2001 and October 4, 2001, you may be a member of the class and have until January 14, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.