NEW YORK, Feb. 15, 2002 (PRIMEZONE) -- According to Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com), which has filed a class action lawsuit against ImClone Systems, Inc. ("ImClone" or the Company) (Nasdaq:IMCL), and three of the company's senior officials, on behalf of all those persons or entities who purchased the common stock of ImClone during the period between April 3, 2001 through January 4, 2002, inclusive (the "Class Period"), shareholders have until Friday March 8, 2002 to seek appointment by the Court as one of the lead plaintiffs in this action.
The lawsuit charges that ImClone issued materially false and misleading statements during the Class Period concerning the progress of the Company's Phase II clinical study of IMC-C225, also known as Erbitux, for the treatment of colorectal cancer, and the likelihood that the U.S. Food and Drug Administration ("FDA") would accept for filing the Company's rolling Biologics License Application ("BLA") for the drug product. As alleged in the Complaint, these statements were materially false and misleading because, among other things, defendants failed to comply with the FDA's requests for specific data regarding the efficacy of Erbitux, thereby rendering the application unacceptable.
On December 28, 2001, after the close of the market, ImClone disclosed that the FDA had refused to accept the Company's BLA for Erbitux, a highly unusual event which only occurs when the application is facially flawed or otherwise indicates that the data presented was inadequate to support consideration for approval. However, ImClone downplayed this event claiming that the FDA had merely requested "additional information."
Thereafter, on January 7, 2002, a Washington D.C. based newsletter, "The Cancer Letter," reported far more serious and numerous problems with ImClone's application after obtaining a copy of the FDA's letter reflecting its decision to "refuse to file" ("RTF"). The RTF revealed that ImClone had been forewarned more than a year earlier about FDA concerns regarding the combined use of Erbitux with another approved, but toxic, chemotherapy drug product, CPT-11, and that the FDA had demanded that ImClone demonstrate that CPT-11 was "necessary to achieve the clinical" effectiveness of Erbitux, a material fact that defendants had concealed from investors.
Immediately following the disclosures on December 28, 2001 and January 7, 2002, the price of ImClone stock plummeted from over $55 per share to less than $36 per share, a loss of nearly 40%. In addition, while Class Members lost millions of dollars from their purchases of ImClone stock, the individual defendants reaped over $136 million from their sales of ImClone stock at inflated prices.
If you purchased the common stock of ImClone during the Class Period, you have until March 8, 2002 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca