NEWARK, N.J., Feb. 20, 2003 (PRIMEZONE) -- An investor has sued Bio-Technology General Corp. (Nasdaq:BTGC) and certain top executives, accusing the biopharmaceutical company of issuing false and misleading financial statements to the public, Berman DeValerio Pease Tabacco Burt & Pucillo said today.
The lawsuit was filed February 19 in the U.S. District Court for the District of New Jersey. Plaintiffs seek damages for violations of federal securities laws on behalf of all investors who bought Bio-Technology common stock from April 19, 1999 to August 2, 2002 (the Class Period).
Berman DeValerio has represented investors in class actions for over 20 years. To review the complaint and learn more about becoming a lead plaintiff, please visit the firm's website at www.bermanesq.com.
The lawsuit claims Bio-Technology defrauded investors by releasing false and misleading financial statements about its revenue and earnings, causing the company's stock to reach an artificially high price.
Bio-Technology stunned its investors on August 2, 2002 by announcing it would have to revise and restate its prior financial results for 1999, 2000, 2001 and the first quarter of 2002. According to the complaint, Bio-Technology violated Generally Accepted Accounting Principles and Securities and Exchange Commission rules, improperly accounting for:
a) development and startup costs associated with a new drug;
b) compensation charges resulting from stock option awards to certain
employees and former employees; and
c) revenue from a 1999 product sale in which significant
uncertainties about the realization of the invoiced amount arose.
The market reacted swiftly to the company's announcement. Bio-Technology stock fell from a high of $4.16 on August 1, 2002 to a low of $3.49 on August 2, 2002, a single-day decline of more than 15% on heavy volume and a decline of more than 83% from the Class Period high of $20.44 on March 1, 2000.
If you purchased Bio-Technology General Corp. stock during the period April 19, 1999 to August 2, 2002, you may wish to contact the following attorney at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
C. Oliver Burt, III, Esq. 515 North Flagler Drive Suite 1701 West Palm Beach, FL 33401 (561) 835-9400 lawfla@bermanesq.com
If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than March 11, 2003. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. You may also retain counsel of your choice. To be a member of the class, however, you need not take any action at this time.
Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations, and consumer fraud. The firm consists of 33 attorneys in Boston, San Francisco, and West Palm Beach, Florida.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.