NEW YORK, April 7, 2003 (PRIMEZONE) -- Wechsler Harwood LLP today announced that a securities class action has been commenced on behalf of persons or entities who purchased or otherwise acquired the securities of VaxGen, Inc. ("VaxGen" or the "Company") (Nasdaq:VXGN) during the period between February 24, 2003 and February 26, 2003 (the "Class Period").
The case is pending in the United States District Court for the Northern District of California against defendants VaxGen and certain of its officers and directors. A copy of the complaint is available from the Court or can be viewed on the Wechsler Harwood web site at: www.whesq.com
VaxGen is engaged in the development and commercialization of AIDSVAX, a vaccine designed to prevent infection or disease caused by HIV (Human Immunodeficiency Virus), the virus that causes AIDS. The original AIDSVAX technology was developed by Genentech, Inc. and then licensed exclusively to the Company.
The Complaint alleges that on Sunday, February 23, 2003, the Company shocked the market by reporting that the long-awaited results of its U.S. clinical trials were a failure as the "study did not show a statistically significant reduction of HIV infection within the study population as a whole . . . the primary endpoint of the trial." On the following Monday morning, February 24, 2003, after trading was halted for an hour, VaxGen stock plummeted approximately 65%.
It is further alleged that by later that day, however, as the stock was still reeling from news of the failed clinical trials, defendants announced that the trials had actually demonstrated an efficacy rate in the range of 30% to 84% for an ethnic subgroup of non-Caucasian, non-Hispanic volunteers and that the vaccine could be approved for such populations. Upon this encouraging news, the VaxGen stock shot back up nearly 130% from the trading day low of $3.00 to over $7.60 per share.
Nonetheless, two days later, on February 26, 2003, defendants again shocked the investing community by revealing that the statements regarding elevated efficacy rates for non-Caucasians were inaccurate and unsubstantiated because the Company had not taken the necessary "penalties" to account for the fact that less than 10% of the clinical trial participants were actually non-Caucasians. On this news, VaxGen stock again plummeted to a close of $4.82 per share and progressively lost value thereafter. As of April 3, 2003, shares of VaxGen were trading at approximately $2.50 per share.
If you purchased securities during the Class Period, you may, no later than June 6, 2003, move to be appointed as a lead plaintiff in this class action. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Phone: 877-935-7400 (Toll Free) David Leifer, Wechsler Harwood Shareholder Relations Department: dleifer@whesq.com, extension-251
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca