LOS ANGELES, Feb. 22, 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 New Jersey on behalf of a class (the "Class") consisting all persons or entities who purchased or otherwise acquired securities of Pharmos Corporation ("Pharmos" or the "Company") (Nasdaq:PARS) between August 23, 2004 and December 20, 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 Pharmos, Haim Aviv and Gad Riesenfeld with violations of federal securities laws. Plaintiff claims defendants' omissions and material misrepresentations during the Class Period artificially inflated the Company's stock price, inflicting damages on investors. Pharmos is a bio pharmaceutical company that develops and commercializes novel therapeutics to treat neurological disorders, including traumatic brain injury (TBI) and post surgical cognitive impairment. The Complaint alleges that defendants knowingly or recklessly misrepresented and failed to disclose the following material adverse facts: (1) defendants knew or recklessly disregarded that Pharmos' flagship drug product - Dexanabinol - was ineffective for treating TBI; (2) defendants maintained the appearance that Dexanabinol was effective for the sole purpose of allowing Company executives to sell their own shares at artificially inflated prices; and (3) the Company's statements regarding the effectiveness of the drug were lacking in any reasonable basis when made.
On December 20, 2004, Pharmos announced top line results of its pivotal Phase III trial of Dexanabinol as a treatment for severe TBI. As measured by the primary clinical outcome endpoint, the Extended Glasgow Outcome Scale, Dexanabinol did not demonstrate efficacy. This news shocked the market. Shares of Pharmos fell $2.32 per share, or 66.29 percent, to close on December 20, 2004, at $1.18 per share, on unusually high volume.
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 March 25, 2005, 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 Michael Goldberg, 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