HARTFORD, Conn., Feb. 13, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard, 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 New York on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Nuvelo, Inc. ("Nuvelo") (Nasdaq:NUVO) between January 5, 2006 and December 8, 2006, inclusive, (the "Class Period"). Also included are those who purchased in a Secondary Offering on or around January 30, 3006.
The Complaint alleges that Nuvelo and certain of its officers and directors violated Federal Securities laws. Specifically, defendants concealed the following facts: (i) Nuvelo had no reliable clinical data suggesting that its drug candidate alfimeprase "dissolved" blood clots when applied to them through a catheter and (ii) that Nuvelo had no "power calculations" suggesting alfimeprase would out-perform a placebo as the Food and Drug Administration ("FDA") would demand. On December 14, 2005, Nuvelo announced a Special Protocol Assessment ("SPA") agreement from the FDA, which it claimed would solidify the regulatory pathway to approval for alfimeprase. Defendants also stated their "power calculations" demonstrated alfimeprase's efficacy as a drug candidate. During a January 5, 2006 conference call, defendants confirmed they believed alfimeprase would reach the U.S. consumer market by 2008 and would generate $500 million in annual sales in the U.S. alone.
On December 11, 2006, Nuvelo disclosed that alfimeprase had completely failed its clinical trials. Nuvelo's CEO then admitted that alfimeprase failed to perform better than placebos and that previously reported positive results were due to drug injections washing clots away rather than dissolving them. On this news, Nuvelo's stock fell 80%.
If you are a member of the class, you may, no later than April 10, 2007, 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 Izard, P.C. 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 Izard, P.C. toll-free at (800) 797-5499, or by e-mail at firm@snlaw.net, or visit our website: www.snlaw.net.