HARTFORD, Conn., July 9, 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 Threshold Pharmaceuticals, Inc. ("Threshold") (Nasdaq:THLD) common stock during the period between February 4, 2005 and July 14, 2006 (the "Class Period"), including purchasers in Threshold's February 4, 2005 initial public offering ("IPO") and its October 12, 2005 follow-on offering.
The Complaint charges Threshold and certain of its officers and directors violated federal securities laws. Specifically, in preparation for the IPO, defendants conducted a so-called "Phase II" study of TH-070, its lead product candidate for the treatment of symptomatic benign prostatic hyperplasia ("BPH"), at Bari University in Italy. Based on the purported success of the Bari Phase II study, Threshold completed its $37 million IPO in February 2005, conducted additional clinical trials, filed a new drug application with the FDA in late 2005, and completed a $65 million follow-on offering in October 2005. However, on May 11, 2006, defendants disclosed that the FDA had placed the TH-070 program on partial clinical hold as a result of abnormalities observed in liver enzyme levels in six subjects in ongoing clinical trials and had requested additional information related to the drug's acceptable dose and duration of treatment in BPH patients. Although the defendants were aware of TH-070's propensity to cause liver toxicity, the IPO and follow-on offering prospectuses concealed it.
On July 17, 2006, Threshold conceded that TH-070 provided no benefit whatsoever in the alleviation of prostate enlargement and that Threshold planned to discontinue its development. On this news, Threshold fell to $1.55 per share.
If you are a member of the class, you may, no later than September 4, 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@snilaw.com, or visit our website: www.snilaw.com.