NEW YORK, Aug. 17, 2004 (PRIMEZONE) -- The law firm of Wechsler Harwood LLP announces that a securities class action lawsuit was commenced in the United States District Court for the Southern District of California, on behalf of purchasers of the common stock of Ligand Pharmaceuticals, Inc. ("Ligand" or the "Company") (Nasdaq:LGND) between March 3, 2004 through August 2, 2004, inclusive (the "Class Period").
The Complaint alleges that Ligand and David E. Robinson and Paul V. Maier ("Defendants") violated the federal securities laws by issuing materially false and misleading statements during the Class Period. In violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that the Defendants failed to disclose and/or misrepresented that inventory de-stocking at the wholesale level was occurring because the Company was unloading Avinza inventory which was about to expire, that the overall demand of the Company's products was down due to inventory de-stocking, and that Medicaid prescriptions were increasing, causing the Company to pay large rebates to Medicaid and that in fact the increase in rebates was not a one-time occurrence.
On August 3, 2004, Ligand announced that its second-quarter loss increased, and that its outside auditor had resigned. Shares of Ligand fell almost 40% or $5.40 per share to close at $8.18 per share. If you purchased Ligand securities during the Class Period, you may, no later than October 8, 2004, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
Plaintiff is represented by the law firm of Wechsler Harwood LLP, which has extensive experience in prosecuting investor class actions involving financial fraud. Wechsler Harwood LLP has prosecuted securities, antitrust and consumer class actions for over 10 years. For more information about Wechsler Harwood LLP, please visit its website at www.whesq.com.
If you are a member of the class described above, you may, not later than October 8, 2004, 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. You may retain Wechsler Harwood LLP, or other counsel of your choice, to serve as your counsel in this action.
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 Wechsler Harwood Shareholder Relations Department: clowther@whesq.com extension 257.