PHILADELPHIA, March 20, 2006 (PRIMEZONE) -- Law Offices Bernard M. Gross, P.C. (http://www.bernardmgross.com) announces that a class action lawsuit, numbered 06-1493 was commenced in the United States District Court for the Northern District of Illinois, before the Honorable George M. Marovich, on behalf of purchasers of NORTHFIELD LABORATORIES, INC. ("NORTHFIELD" or the "Company") (Nasdaq:NFLD) securities during the class period between February 20, 2004 and February 21, 2006 , including purchasers in the May 2004 and February 2005 stock offerings, who have been damaged thereby.
The action is pending against defendants Northfield Laboratories, Inc. and Steven A. Gould, Chairman and Chief Executive Officer. A copy of the Complaint is available from the Court or can be viewed on the Law Offices Bernard M. Gross, P.C. website at www.bernardmgross.com.
The Complaint charges defendants with violations of the Securities Exchange Act of 1934 and Securities Act of 1933. The complaint alleges that during the class period defendants issued a series of materially false and misleading statements regarding the safety profile and history of PolyHeme, a blood substitute, by failing to disclose the data from the ANH study concerning ten patients who had heart attacks within seven days of taking PolyHeme, that two of those patients died and that none of the patients taking real blood experienced heart attacks.
On February 22, 2006, a story in The Wall Street Journal reported that the data available to defendants from the ANH clinical trial, but not to the public, revealed that ten of 81 patients who received PolyHeme suffered a heart attack within seven days, and two of those died. The data further showed defendants that none of the 71 patients in the ANH clinical trial who received real blood were found to have suffered a heart attack. In the aftermath of receiving this data, defendants shut down the ANH clinical study in 2000 and kept this highly adverse data hidden from the public view. Defendants in a press release on February 22, 2006, responding to The Wall Street Journal article, did not dispute the data concerning the patient heart attacks and deaths from the ANH clinical trial. Rather, defendants admit that they did not publish the data concerning patient heart attacks and deaths, and defendant Gould stated in the press release that "(w)e believe that publishing the full data upon closing the study, would have shown that PolyHeme could not be isolated as the cause of the observed serious adverse events."
The market was stunned by the disclosure of the secret, adverse data from the long-closed ANH clinical trial and the market price of Northfield's common stock fell with the belated disclosures. On February 21, 2006, the day before the disclosure by The Wall Street Journal, Northfield's common stock closed at a price of $12.23 per share. On February 22, 2006, on extraordinary volume of more that 4.1 million shares, Northfield's common stock closed at a price of $11.64 per share. The price continued to drop as the market absorbed all of the news, including the announcement on February 24, 2006, by United States Senator Charles E. Grassley, Chairman of the U.S. Senate Finance Committee, that he has begun an inquiry into the matter.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions.
If you purchased the securities of NORTHFIELD LABORATORIES, INC. (Nasdaq:NFLD) during the period February 20, 2004 and February 21, 2006, including purchasers in the May 2004 and February 2005 stock offerings, you may no later than May 16, 2006, move the Court to serve as lead plaintiff of the Class, if you so choose. In order 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 rights or interests with respect to these matters,
PLEASE CONTACT: Law Offices Bernard M. Gross, P.C.
Susan R. Gross, Esq.
Deborah R. Gross, Esq.
The Wanamaker Bldg
100 Penn Sq. East, Suite 450
Philadelphia, PA 19103
Telephone: 866-561-3600 (toll free)
or 215-561-3600
E-mail: susang@bernardmgross.com
or debbie@bernardmgross.com.
Website: http://www.bernardmgross.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.