NEW YORK, May 30, 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 Regeneron Pharmaceuticals, Inc. ("Regeneron" or the "Company") (Nasdaq:REGN) between March 28, 2000 and March 31, 2003, inclusive, (the "Class Period").
The case, entitled Griffith v. Regeneron Pharmaceuticals, Inc., Case No. 03-CV-3956 (RWS), is pending in the United States District Court for the Southern District of New York against defendants Regeneron and certain of its senior 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
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between March 28, 2000 and March 30, 2003, thereby artificially inflating the price of Regeneron common stock. As further alleged in the Complaint, during the Class Period, Regeneron initiated and completed Phase II and Phase III clinical studies of its drug AXOKINE for the treatment of obesity. Defendants claimed that the Phase III study would demonstrate that patients in the study who were administered AXOKINE over a one year period would lose more weight than those patients administered a placebo.
Defendants led the public to believe that as a consequence, AXOKINE would be more effective in treating obesity than other competing products and would generate sales of more than $500 million annually. However, 73.5% of the patients taking AXOKINE developed antibodies. The consequence of the antibodies was to neutralize or reduce the effectiveness of AXOKINE, thereby dramatically reducing the number of potential patients that could possibly be treated by AXOKINE. On March 31, 2003, Regeneron admitted AXOKINE lost effectiveness in about 70% of patients in a study. As a result, the price of Regeneron shares dropped immediately and closed down 56.5% from the previous day. Over the next few weeks Regeneron shares would settle having declined 64%, for a market capitalization loss of approximately $464 million.
If you are a member of the class described above, you may, not later than July 1, 2003, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. 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 Toll Free Telephone: (877) 935-7400 David Leifer, Wechsler Harwood Shareholder Relations Department: dleifer@whesq.com (Ext. 251)
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca