NEW YORK, March 11, 2003 (PRIMEZONE) -- Wolf Popper LLP has filed a securities fraud class action complaint against Bayer (AG) Aktiengesellschaft (NYSE:BAY), and certain present and former members of its Board of Management, on behalf of purchasers of Bayer AG American Depositary Shares (ADRs) from May 26, 1999 through February 21, 2003 (the "Class Period"). (Prior to January 23, 2002, Bayer AG ADRs traded on the NASDAQ under the symbol BAYZY.) A copy of the complaint is available from the U.S. District Court for the Southern District of New York (Docket No. 03 CV. 1546 (SWK)).
The complaint alleges, among other things, that throughout the Class Period defendants misrepresented Bayer AG's success in marketing it's Baycol cholesterol lowering drug. Defendants' statements were materially false and misleading because Bayer AG's own scientists were stating internally that Baycol, when administered with other popular medications or at high dosages, caused unacceptable risk of serious side effects. In fact, throughout the Class Period Bayer AG was informed that patients taking Baycol were experiencing serious and life threatening side effects. Baycol was belatedly withdrawn from the market in August 2001 after the FDA raised serious concerns about the safety of Baycol in light of reports of Baycol patients dying. The true facts concerning defendants' knowledge of the dangers of Baycol and the Company's potential liability to Baycol patients were not completely disclosed until February 22, 2003, in connection with court filings in various personal injury actions commenced against Bayer AG by persons who had been prescribed Baycol and had suffered severe side effects. These court documents demonstrated defendants' early knowledge of the risk of serious or life threatening side effects to patients taking Baycol, including the knowledge that patients taking Baycol were found to have 5 to 10 times the chance of developing a life threatening illness -- rhabdomyolysis -- as patients taking other similar medicines. The price per share of Bayer AG ADRs fell approximately 17% when Baycol was withdrawn from the market in August 2001. Following the February 22, 2003 disclosure of the true state of defendants' knowledge of the dangers of Baycol, Bayer AG ADRs declined an additional 27%, from $17.15 per share to $12.58 days after the revelation -- more than 68% below the trading price at the beginning of the Class Period ($39.75).
Members of the proposed class who desire to be appointed lead plaintiff in this action must file a motion with the Court no later than May 12, 2003. Information regarding investors' rights in the class action, including the right to be designated a lead plaintiff, should be addressed to:
Wolf Popper LLP, Michael A. Schwartz, Esq. 845 Third Avenue, New York, NY 10022-6689 Tel.: 212.451.9668, Toll Free: 877.370.7703; Fax: 212.486.2093, Toll Free: 877.370.7704, Email: mschwartz@wolfpopper.com; website: www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca