NEW YORK, June 6, 2005 (PRIMEZONE) -- Goodkind Labaton Rudoff & Sucharow LLP filed a class action lawsuit on June 6, 2005 in the United States District Court for the District of Maryland, on behalf of persons who purchased or otherwise acquired publicly traded securities of Martek Biosciences Corporation ("Martek" or the "Company") (Nasdaq:MATK) between December 9, 2004 and April 27, 2005, inclusive, (the "Class Period"). The lawsuit was filed against Martek, Henry Linsert, Jr., and Peter L. Buzy. ("Defendants").
If you are a member of this class you can view a copy of the complaint and join this class action online at http://www.glrslaw.com/get/?case=Martek
The complaint alleges that Defendants violated the Securities Exchange Act of 1934. Specifically, the complaint alleges that Defendants issued a series of materially false and misleading statements regarding the Company's business and prospects. More specifically, the complaint alleges that Defendants knew, but concealed or misrepresented that: 1) they were aware that the Company's sales were declining and would not come close to what they were publicly projecting, which were critical in ensuring the Company would be able to complete an $86 million stock offering; and 2) the Company's ability to grow was solely based upon its ability to increase sales of its DHA (docosahexaenoic acid)/ARA (arachidonic acid) products, and that it had, by the Fall of 2004, flooded its licensees with the products, well beyond appropriate inventory levels.
On April 27, 2005, Martek issued a press release which revealed a significant shortfall in sales and earnings. In response to the news, shares of Martek fell from $60.08 to close at $32.49 on April 28, 2005, a decline of 45.9%.
Plaintiffs are represented by the law firm of Goodkind Labaton Rudoff & Sucharow LLP. Goodkind Labaton is one of the country's premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts.
If you bought Martek securities between December 9, 2004 and April 27, 2005, inclusive, you may qualify to serve as Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than July 5, 2005. If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, please contact one of our representatives or Christopher Keller, Esq. at 800-321-0476.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca