NEW YORK, Nov. 1, 2006 (PRIMEZONE) -- A class action lawsuit was filed by Zimmerman, Levi & Korsinsky, LLP in the United States District Court for the Southern District of New York on behalf of all purchasers of the securities of Connetics Corporation ("Connetics" or the "Company") (Nasdaq:CNCT) between June 28, 2004 through July 9, 2006, inclusive (the "Class Period").
The Complaint alleges that defendants violated the federal securities laws. The Complaint charges that each of the defendants knew, yet concealed from the investing public, a significant finding regarding the Company's key new acne drug (Velac), which would likely bar FDA approval and reported false financial results by understating its rebate reserves. More specifically, it is alleged that defendants failed to disclose and misrepresented the following material adverse facts: (i) the carcinogenicity study of Velac had indicated that a high incidence of mice treated with Velac developed tumors; (ii) Velac would be deemed unsafe by the FDA and would not provide the revenue and income promised by the Company; and (iii) the Company falsified its financial reports for at least 2005 and likely earlier by improperly accounting for its rebates. As a result of defendants' issuance of materially false and misleading statements, Connetics publicly traded securities traded at inflated levels during the Class Period, which permitted defendants to profit millions of dollars in insider trading proceeds. On July 10, 2006, Connetics announced that the Company's revenues and earnings for the second quarter and for the full year 2006 to be materially below the projected amounts announced May 3, 2006. On this news, shares of Connetics declined 33.6% to $7.76.
If you purchased Connetics securities between June 28, 2004 through July 9, 2006 (inclusive), you may serve as lead plaintiff. If you wish to serve as lead plaintiff, you must file a motion for appointment as lead plaintiff with the Court no later than November 17, 2006. In order to serve as lead plaintiff, you must meet certain legal requirements. You may retain Zimmerman, Levi & Korsinsky, LLP, or other counsel of your choice to serve as your counsel in this action.
For more information or to obtain a copy of the complaint and other information in order to join the lawsuit via E-mail or U.S. Mail, please contact:
Eduard Korsinsky, Esq. Pam Mahon Zimmerman, Levi & Korsinsky, LLP 39 Broadway, Suite 1601 New York, NY 10006 Tel. (212) 363-7500 Toll Free: (800) 835-4950 E-mail: ek@zlk.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca