NEW YORK, July 28, 2007 (PRIME NEWSWIRE) -- Roy Jacobs & Associates announces that it has commenced a class action lawsuit in the United States District Court for the Southern District of New York on behalf of all persons who purchased or acquired securities of GPC Biotech AG ("GPC Biotech" or the "Company") (Nasdaq:GPCB) between December 5, 2005 and July 24, 2007 inclusive (the "Class Period"). The action was brought against the Company and three of its executive officers.
The Complaint alleges that Defendants violated the anti-fraud provisions of the federal securities laws by issuing a series of materially false public disclosures during the Class Period thereby artificially inflating the price of GPC Biotech securities. GPC Biotech has spent several years attempting to successfully develop its key drug Satraplatin, and needed to convince investors who were funding the Company that it was making substantial progress toward Satraplatin's "early" approval in order to obtain continued funding.
However, the required Satraplatin Phase 3 drug trial employed improper methods for measuring whether Satraplatin was effective. The Defendants knew this since they were experienced in pharmaceutical development and testing. Moreover, Defendants were specifically warned by FDA representatives in connection with the Phase 3 trial that the protocols to be used were deviating from accepted methodologies. Thus Defendants knew that there was a very substantial chance that the FDA would not grant any quick approval to the drug.
Defendants did not reveal these material adverse facts regarding Satraplatin and the unapproved methodology. Rather they were revealed by the FDA. On July 24, 2007, the FDA announced that its oncology panel had unanimously recommended against the approval of Satraplatin. The committee said the FDA had no prior experience with the protocols used in the Phase 3 study, which the FDA noted had been "clearly communicated" to GPC Biotech while the drug was in development.
In reaction to these unexpected revelations, GPC Biotech stock fell $7.20 on July 25, 2007 to close at $13.16.
If you purchased GPC Biotech stock during the Class Period (between December 5, 2005 and July 24, 2007), you may qualify to serve as Lead Plaintiff on behalf of the Class. You are not required to have sold your GPC Biotech stock in order to claim damages, or to serve in this role. All motions for appointment as Lead Plaintiff must be filed with the Court by September 24, 2007.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact Roy L. Jacobs. Mr. Jacobs will personally speak with you at no cost or obligation.
You may also join this action by visiting our website at www.jacobsclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca.