NEW YORK, March 25, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit on behalf of shareholders who purchased or otherwise acquired the securities of Cell Therapeutics Inc. ("CTI" or the "Company") (Nasdaq:CTIC) between June 7, 2004 and March 4, 2005, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934. The complaint alleges that defendants' Class Period statements regarding Xyotax, one of the Company's lung cancer drugs undergoing efficacy testing, were materially false and misleading for the following reasons: (i) contrary to the defendant's repeated representations that observed results of the study were positive and encouraging, the results in fact showed that Xyotax would not meet its primary endpoint; (ii) Xyotax did not boost survival for non-small cell lung cancer any better than Taxol, a chemotherapeutic agent that had been on the market for years; (iii) based on the results of the trial the Company would not be able to begin pre launch activities and to position itself to submit a new drug application for Xyotax in the foreseeable future. The complaint further alleges that defendants were motivated to commit the fraud alleged herein so that CTI's private offering would yield more money for the Company, than if the truth was known. On December 20, 2004, CTI launched an $18.4 "Million Direct Equity Placement," selling approximately 2,586,000 shares of its common stock to institutional investors at a negotiated price per share of $7.10. In addition, during the Class Period, defendant Bianco sold 39,625 shares at artificially inflated prices for proceeds of $300,877.
On March 7, 2005, prior to the opening of the market, CTI issued a press release announcing that Xyotax failed to meet the endpoint of the Stellar 3 Pivotal Trial, which had been touted throughout the Class Period. The study showed that Xyotax was no better at boosting cancer survival than existing chemotherapy agents. In reaction to this announcement, CTI shares fell $4.75 per share or 47.5%, on March 7, 2005, to close at $5.25 per share, on unusually high volume.
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 CTI securities on any world exchange between June 7, 2004 and March 4, 2005, and sustained damages, you may, no later than May 9, 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.