NEW YORK, Dec. 28, 2004 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit on behalf of purchasers of the securities of Praecis Pharmaceuticals Inc. ("Praecis" or the "Company") (Nasdaq:PRCS) between November 25, 2003 and December 6, 2004, inclusive (the "Class Period").
Murray, Frank & Sailer LLP has learned that the Company knowingly or recklessly failed to disclose and misrepresented the following material adverse facts: (1) the Company failed to effectively communicate with and educate physicians about the drug; (2) the distribution of the Company's drug, Plenaxis, was limited by the Food and Drug Administration, significantly decreasing the likely market for the drug; (3) the Company, despite high enrollment in the PLUS program, had problems persuading physicians to prescribe the drug, concerns about the drug's use and reimbursement for the therapy; (4) the Company lacked adequate internal controls; and (5) as a result, the defendants' projections for fiscal 2004 were not reasonably founded.
On December 6, 2004, the Company stated that it would remove previously announced short- and long-term sales and earnings guidance, and that it did not anticipate providing further guidance until it has more sales data on Plenaxis's sales. On this news, shares of Praecis fell $.56 per share, over 25%, on December 6, 2004, to close at $1.61 per share.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Praecis Pharmaceuticals securities on any world exchange between November 25, 2003 and December 6, 2004, and sustained damages, you may, no later than February 15, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca