HARTFORD, Conn., Sept. 27, 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 Southern District of Texas on behalf of all persons who purchased the publicly traded securities of Encysive Pharmaceuticals Inc. ("Encysive" or the "Company") (Nasdaq:ENCY) between February 19, 2004 and March 24, 2006, inclusive, (the "Class Period"). Also included are those who purchased in a secondary offering on or around September 9, 2004.
The Complaint alleges that Encysive, a biopharmaceutical company, and certain of its officers and directors violated federal securities laws by issuing a series of materially false statements. Specifically, defendants made misleading statements regarding the success of Sitaxentan, or Thelin, a drug it was developing to treat Pulmonary Arterial Hypertension ("PAH"), and stated that it had completed Phase III development of Thelin. During the Class Period, defendants led shareholders and analysts to believe that FDA approval was imminent and that such approval would make Thelin a competitor to Acetelion Ltd.'s similar drug, Tracleer (Bosentan). However, after Encysive completed two successful public offerings and the individual defendants received cash/stock awards based on the apparent success of Thelin, the Company's shareholders learned that defendants had been less than forthcoming with the true prospects for Thelin. On March 27, 2006, U.S. regulators delayed approving Thelin until they could get more data. The FDA sent Encysive a letter asking for information and possibly more studies to determine if Thelin was safe and effective for use in treating PAH. On this news, Encysive shares fell 49%.
If you are a member of the class, you may, no later than November 27, 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.