DENVER, Nov. 24, 2008 (GLOBE NEWSWIRE) -- Dyer & Berens LLP (www.DyerBerens.com) today announced that it has filed a class action lawsuit in the United States District Court for the District of New Jersey on behalf of investors of PharmaNet Development Group, Inc. ("PharmaNet" or the "Company") (Nasdaq:PDGI) who purchased common stock between November 1, 2007 and April 30, 2008, inclusive (the "Class Period"). The complaint charges PharmaNet and certain of its officers and directors with violations of the Securities Exchange Act of 1934.
If you wish to serve as a lead plaintiff, you must move the Court no later than January 19, 2009. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Jeffrey A. Berens, Esq. at (888) 300-3362, (303) 861-1764, or via email at jeff@dyerberens.com. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint alleges that, during the Class Period, defendants made false and misleading statements to the market about the Company, its business, backlog and earnings guidance. For example, defendants allegedly failed to disclose that: (i) the Company's backlog contained numerous contracts which were likely to be cancelled; (ii) the Company had ramped up expenses in order to perform contracts even though there was a substantial likelihood that the contracts would be cancelled; (iii) the Company was entering into contracts with highly risky biotechnology and pharmaceutical companies where the risk that the contract would be cancelled was greatly increased; and (iv) given the foregoing, defendants lacked a reasonable basis for their positive statements about the Company. On April 30, 2008, PharmaNet issued a press release announcing its financial results for the first quarter of 2008. For the quarter, the Company reported direct revenue of $86.8 million and backlog of $482.9 million. In response to the announcement, the price of PharmaNet stock dropped from $23.86 per share to $17.10 per share on extremely heavy trading volume.
Plaintiff seeks to recover damages on behalf of purchasers of PharmaNet securities during the Class Period. The plaintiff is represented by Dyer & Berens LLP, which has expertise in prosecuting investor class actions involving financial fraud. The firm's extensive experience in securities litigation, particularly in cases brought under the Private Securities Litigation Reform Act, has contributed to the recovery of hundreds of millions of dollars for aggrieved investors. For more information about the firm, please go to www.DyerBerens.com.