LOS ANGELES, Nov. 2, 2006 (PRIMEZONE) -- Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a Class Action lawsuit in the United States District Court for the Southern District of Texas on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of Encysive Pharmaceuticals Inc. ("Encysive" or the "Company")(Nasdaq: ENCY) between February 19, 2004 and March 24, 2006, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Encysive and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning Encysive's business and prospects caused the Company's stock price to become artificially inflated, inflicting damages on investors. Encysive is a biopharmaceutical company which engages in the discovery, development and commercialization of novel, synthetic and small molecule compounds. The Complaint alleges that during the Class Period defendants made false and misleading statements to the investing public concerning Encysive's lead product candidate, Thelin (sitaxsentan), a drug being developed to treat Pulmonary Arterial Hypertension (PAH), and that the Company's shares were valued based upon the apparent success of Thelin. Plaintiff claims that during the Class Period Encysive claimed it had completed Phase III development of Thelin, causing Encysive's share price to reach new highs. After the Company completed two successful public offerings, investors learned that defendants had been misrepresenting the actual prospects for Thelin.
On March 27, 2006, Encysive shares fell 49% after U.S. regulators delayed approving Thelin until they could get more data. The Food and Drug Administration sent the Company a letter asking for information and possibly more studies to determine if Thelin is safe and effective for use in treating PAH. Prior to the March 27, 2006 revelations, defendants had led shareholders and analysts to believe that FDA approval was imminent and that such approval would make Thelin a competitor to Bosentan, another treatment for PAH.
On July 24, 2006, the Company revealed that material issues raised in the March 2006 FDA statements remained "unresolved," rendering FDA approval uncertain, at best - contrary to defendants' previous claims. In response, the Company's shares plummeted again, this time by 40%, trading as low as $3.90 per share in after-hours trading.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than November 27, 2006, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.