COLCHESTER, Conn., April 17, 2006 (PRIMEZONE) -- On April 17, 2006, Scott+Scott, LLC filed a securities class action in the U.S. District Court for the Northern District of Illinois against Northfield Laboratories, Inc. (Nasdaq:NFLD) ("Northfield" or the "Company") and CEO Stephen A. Gould on behalf of all securities purchasers between February 20, 2004, and February 21, 2006, inclusive (the "Class Period"), for securities law violations. Northfield primarily develops PolyHeme, a blood substitute, which is currently the subject of a Phase III clinical trial. According to the complaint, unbeknownst to investors, despite glowing reviews of its current PolyHeme study, Northfield failed to disclose material adverse facts from its earlier PolyHeme studies. Consequently, as the complaint alleges, investors purchased Northfield shares at artificially inflated prices during the Class Period.
If you purchased Northfield securities during the Class Period and wish to serve as lead plaintiff in the action, you must seek appointment from the court no later than May 16, 2006. Any class member may move to serve as lead plaintiff through counsel of their choosing. Class members may also choose to do nothing and remain absent class members. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott partner David R. Scott (drscott@scott-scott.com, 800/404-7770, 860/537-5537) or visit www.scott-scott.com for more information. There is no cost or fee to you.
The complaint alleges that in publicly discussing Northfield's current PolyHeme study during the Class Period, defendants concealed the fact that: (a) in an earlier PolyHeme study 10 of 81 surgery patients suffered heart attacks, compared with zero of 71 who received regular blood transfusions; (b) the Company did not know why the heart attacks had occurred in the earlier trials; (c) entire communities were now subject to the undisclosed risks resulting from the Company's concealment and lack of knowledge regarding the earlier trial outcomes; and (d) the earlier adverse clinical results had been withheld from prospective patients for the Company's latest clinical trials. Failure to disclose these adverse facts served to artificially inflate Northfield's stock price during the Class Period, harming investors.
Finally, on February 22, 2006, The Wall Street Journal revealed the previously hidden findings of the earlier PolyHeme studies. On this news, Northfield's stock price tumbled, losing $0.59 or 4.8%, from its closing price of $12.23 on February 21, 2006, to close at $11.64 on February 22, 2006, on heavy volume of over 4.1 million shares, nearly ten times normal trading volume.
Scott+Scott is a national law firm with significant experience in prosecuting investor class actions. The firm dedicates itself to client communication and satisfaction and currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide.