LOS ANGELES, Jan. 21, 2005 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the District of Massachusetts on behalf of a class (the "Class") consisting all persons or entities who purchased or otherwise acquired securities of Praecis Pharmaceuticals Inc. ("Praecis" or the "Company") (Nasdaq:PRCS) between November 25, 2003 and December 6, 2004, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Praecis and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims defendants' omissions and material misrepresentations concerning Praecis' operations, financial performance and prospects artificially inflated the Company's stock price, inflicting damages on investors. Praecis is a biopharmaceutical company focused on the discovery and development of therapies to address unmet medical needs. The Company's first United States Food and Drug Administration ("FDA") approved product is Plenaxis, a treatment for advanced symptomatic prostate cancer. The Complaint alleges defendants knowingly or recklessly misrepresented and failed to disclose the following material adverse facts: (1) the Company failed to effectively communicate with and educate physicians about Plenaxis; (2) the distribution of Plenaxis, was limited by the FDA to physicians who enroll in the Plenaxis User Safety ("PLUS") Program, 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 due to 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 compiled additional data concerning Plenaxis' sales. On this news, shares of Praecis fell $.56 per share -- more than 25% -- on December 6, 2004, to close at $1.61 per share.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than February 7, 2004, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Lionel Z. Glancy, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.