HARTFORD, Conn., July 13, 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 District of Utah on behalf of all persons who purchased the publicly traded securities of NPS Pharmaceuticals, Inc. ("NPS" or the "Company") (Nasdaq:NPSP) between August 10, 2005 and May 2, 2006, inclusive, (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements concerning the potential for success of PREOS, its full-length human parathyroid hormone (PTH) drug candidate for the treatment of osteoporosis. Specifically, defendants concealed the following: (i) results of the PaTH study evidenced that PREOS was no different from Fosamax in bone density and fracture results; (ii) there was a very narrow market for PTH drugs; (iii) a major study had concluded that further studies were necessary to determine the efficiency of PREOS, if any; (iv) unlike other bone density drugs/products which can be used for hip fracture risk reduction, PREOS could not be prescribed for this use; (v) the Center of Medicare Services of Health and Human Services had ruled that injectable drugs for osteoporosis would be reimbursable only for patients who had suffered a fracture, which indicated that the market for a drug like PREOS was limited to a small subgroup of osteoporosis patients who had suffered a fracture while on an existing oral drug; and (vi) defendants knew PREOS would only be used in the rarest cases, since the Physician Desk Reference recommended Forteo (and hence, injectable parathormone drugs like PREOS) for second line use in osteoporosis after failure of oral drugs like Fosamax and for a maximum of 24 months.
If you are a member of the class, you may, no later than September 11, 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.