HARTFORD, Conn., Oct. 11, 2005 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of New Jersey on behalf of all persons who purchased the common stock of Barrier Therapeutics, Inc. (Nasdaq:BTRX) ("Barrier") between April 29, 2004, and June 29, 2005, inclusive (the "Class Period"). Also included are those who purchased Barrier pursuant and/or traceable to the Company's Initial Public Offering ("IPO") on or about April 29, 2004 and/or in its Secondary Offering on or about February 9, 2005.
The Complaint alleges that Barrier violated federal securities laws by issuing a series of materially false and misleading statements concerning the Company's business and products under development. Specifically, defendants failed to disclose and misrepresented the following adverse facts: (i) that the Company had failed to perform its clinical trials in conformity with FDA guidelines as they had failed to disclose that they had secretly substituted the petroleum base within Zimycan, the effect of which was to substantially lessen the likelihood that the drug could achieve FDA approval; (ii) that Hyphanox did not have a better safety or efficacy profile than fluconazole/Diflucan and, in fact, as investors ultimately learned, Hyphanox was significantly less effective than fluconazole/Diflucan; and (iii) as a result of the foregoing, defendants lacked any reasonable basis for their positive statements.
On June 29, 2005, Barrier announced, among other adverse facts, that the Company's drug trials failed to demonstrate that Hyphanox worked as well as fluconazole. On this news, the price of Barrier stock plummeted over $6.75 per share, a decline of over 45%, to close below $8.00 per share on June 30, 2005.
If you are a member of the class, you may, no later than December 12, 2005, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca