MINNEAPOLIS, Aug. 2, 2007 (PRIME NEWSWIRE) -- Charles H. Johnson & Associates announces that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Threshold Pharmaceuticals, Inc. ("Threshold" or the "Company") (Nasdaq:THLD) publicly traded securities during the period February 4, 2005 through July 14, 2006 (the "Class Period").
If you are a member of the proposed Class, you may move the court to serve as a lead plaintiff for the Class on or before September 4, 2007. You do not need to be a lead plaintiff in order to share in any recovery that may be obtained.
The Complaint alleges that 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 $64 million follow-on offering in October 2005. 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 tendency to cause liver toxicity, the IPO and follow-on offering prospectuses concealed it.
On July 11, 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 purchased Threshold Pharmaceuticals, Inc. securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Neal Eisenbraun, Esq. (cjohnsonlaw@gmail.com)
Charles H. Johnson & Associates
2599 Mississippi Street
New Brighton, MN 55112
(651) 633-5685