Investor Sues Vaso Active Pharmaceuticals, Inc. for Stock Fraud, Berman DeValerio Pease Tabacco Burt & Pucillo Announces

Boston, Massachusetts, UNITED STATES


BOSTON, May 17, 2004 (PRIMEZONE) -- An investor sued Vaso Active Pharmaceuticals, Inc. ("Vaso Active" or the "Company") (Pink Sheets:VAPH) today, claiming the company and two of its top officers misled the investing public about one of its products.

Berman DeValerio Pease Tabacco Burt & Pucillo (www.bermanesq.com) filed the class action in the U.S. District Court for the District of Massachusetts. The lawsuit seeks damages for violations of federal securities laws on behalf of all investors who bought Vaso Active common stock from December 11, 2003, through and including March 31, 2004 (the "Class Period").

To receive a copy of the complaint, you may contact the court, call the firm at (800) 516-9926 or go to http://www.bermanesq.com/pdf/VasoActive-Cplt.pdf.

The lawsuit claims that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder, including U.S. Securities and Exchange Commission ("SEC") Rule 10b-5.

The complaint names as defendants: Vaso Active Pharmaceuticals, Inc.; John J. Masiz, who was at all relevant times the Company's chairman, president and chief executive officer; and Joseph Frattaroli, who was at all relevant times the Company's chief financial officer.

The complaint alleges that Vaso Active issued materially false and misleading information to the investing public during the Class Period that artificially inflated the Company's stock price.

Specifically, the lawsuit says that Vaso Active misrepresented that clinical trials conducted by "independent physicians" and reviewed by the New England Medical Center confirmed that its foot cream product, Termin8, which was formerly known as deFEET, acted as a "remarkably effective cure" for athlete's foot.

According to the complaint, the defendants failed to disclose that:

(a) The New England Medical Center analyzed the study associated with the clinical trial of Termin8 but did not conduct a trial, and therefore was unable to draw conclusions about the product's effectiveness;

(b) The clinical trial lacked adequate control mechanisms, failing to comply with standards established to perform scientific research, and thus could not be used to conclude Termin8's effectiveness or approvability;

(c) The clinical trial was not independent but was conducted by a podiatrist hand-picked by BioChemics, Inc., Vaso Active's parent company; and that

(d) An endorsement of deFEET by the American Association of Medical Foot Specialists was of little, if any, value. (The association is not widely recognized and, in exchange for the endorsement, Vaso Active was asked to donate towards the association's scholarship program.) On March 31, 2004, the SEC halted trading in the Company's stock. In its announcement, the SEC questioned the accuracy of Vaso Active's assertions to the investing public about the U.S. Food and Drug Administration's approval of certain key products.

At the time the trading was halted, Vaso Active common shares were priced at $7.59. When the SEC permitted the stock to resume trading on April 16, 2004, the price dropped to $1.99 on the over-the-counter bulletin board exchange.

If you purchased Vaso Active common stock from December 11, 2003, through and including March 31, 2004, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.


                          Nancy Ghabai, Esq.
                      Michael T. Matraia, Esq.
                         One Liberty Square
                          Boston, MA 02109
                           (800) 516-9926
                          law@bermanesq.com

If you wish to apply to be lead plaintiff in this action, a motion on your behalf must be filed with the court no later than June 7, 2004. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action, or you may submit information online at http://www.bermanesq.com/Securities/Signup1.asp?caseid=511. Please note, you may also retain counsel of your choice and need not take any action at this time to be a class member.

Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations, and consumer fraud. The firm consists of 33 attorneys in Boston, San Francisco and West Palm Beach, Florida.



        

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