HARTFORD, Conn., May 2, 2006 (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 Eastern District of Pennsylvania on behalf of all persons who purchased or otherwise acquired the common stock of Discovery Laboratories, Inc. ("Discovery" or the "Company") (Nasdaq:DSCO) between December 28, 2005, and April 25, 2006, inclusive, (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, defendants made misrepresentations and/or omissions regarding the progress of U.S. regulatory approval for its self-described "lead product" Surfaxin. Throughout the Class Period, defendants repeatedly represented that they anticipated FDA approval of Surfaxin in April 2006. On April 25, 2006, Discovery revealed that Surfaxin's "stability" (its ability to be stored for long periods without any change in its efficacy or its chemical profile) had not been achieved and that such failure would cause a "significant delay in the U.S. regulatory process." The Company admitted that although it had been testing the "production validation batches" periodically for "stability," stability had never been achieved. On this news, Discovery shares fell 53% to close at $2.20.
If you are a member of the class, you may, no later than June 30, 2006, 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.