NEW YORK, July 15, 2013 (GLOBE NEWSWIRE) -- Scott+Scott, Attorneys at Law, LLP ("Scott+Scott") has filed an amended class action complaint in the United States District Court for the Southern District of New York on behalf of all persons who sold or otherwise divested the common stock of Wyeth (formerly NYSE:WYE) contemporaneously with the Defendants' unlawful trades from July 1, 2006 through and including July 18, 2008 (the "Class Period"). The action seeks remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). Scott+Scott previously filed an action on December 21, 2012, on behalf of a class of all persons who purchased or otherwise acquired the common stock of Wyeth between July 21, 2008 and July 29, 2008, inclusive, and by order dated June 17, 2013, the Court appointed City of Birmingham Retirement and Relief System as Lead Plaintiff.
If you sold or otherwise divested Wyeth common stock during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than September 13, 2013. Any member of the investor class may move the Court to serve as lead plaintiff through counsel of its choice or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com, (800) 404-7770, (860) 537-5537) or visit the Scott+Scott website for more information. There is no cost or charge to you for contacting Scott+Scott.
The securities class action complaint alleges that CR Intrinsic Investors, LLC, together with its affiliates, including but not limited to, SAC Capital Associates, LLC and SAC Capital Advisors, L.P. (collectively, "Defendants"), violated the securities laws by trading Wyeth shares based on material, non-public information ahead of a July 29, 2008 announcement disclosing disappointing clinical trial results for the drug bapineuzumab (AAB-001) ("bapi"). Bapi was an Alzheimer's disease treatment that was being jointly developed by Wyeth and Elan Corporation, plc.
Specifically, the complaint charges that, during the Class Period, defendants established substantial long positions in Wyeth securities while in possession of material non-public information concerning the bapi Phase II clinical trial, acquiring over 3 million shares. As of June 30, 2008, Defendants held over $373 million in Wyeth stock.
On June 17, 2008, Wyeth released top-line summary results from the Phase II clinical trial of bapi. The market's reaction was favorable and Wyeth's common stock rose 10.7% after the announcement. Detailed trial results were to be released at a conference on July 29, 2008.
Shortly before the July 29, 2008 conference, Defendants obtained additional non-public final Phase II clinical results from the bapi trial, which were strongly and unexpectedly negative. Defendants aggressively sold their Wyeth shares ahead of the public announcement of the bapi results, completely liquidating their positions. In addition, Defendants opened large short positions in Wyeth.
On July 29, 2008, after the close of the U.S. securities markets, the disappointing Phase II clinical results of bapi were announced to the public. On July 30, 2008, the next trading day, Wyeth's share price fell 41.8% from its prior close on July 29th.
Scott+Scott has significant experience prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide.