PHILADELPHIA, June 17, 2004 (PRIMEZONE) -- On June 16, 2004, the law firm of Berger & Montague, P.C. (http://www.bergermontague.com) filed a class action suit against Adolor Corporation ("Adolor" or the "Company") (Nasdaq:ADLR) and certain of its officers in the United States District Court for the Eastern District of Pennsylvania on behalf of all persons or entities who purchased Adolor common stock from September 23, 2003 through January 14, 2004 (the "Class Period").
The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the SEC by issuing materially false and misleading statements throughout the Class Period that had the effect of artificially inflating the market price of the Company's securities.
The Complaint alleges that Adolor and certain of its officers issued materially false statements concerning the clinical trails for the Company's drug Entereg. Specifically, defendants failed to disclose that: (i) Entereg missed the primary endpoint of time to recovery of gastrointestinal function; (ii) Entereg did not reduce the time to a hospital discharge; (iii) Entereg failed to meet its goal of allowing patients to tolerate food more quickly after surgery; and (iv) Adolor knew that it was likely to have to conduct additional research because it had excluded from the study certain patient subgroups known to produce disappointing results.
As a result of the defendants' alleged false statements, Adolor's stock price traded at inflated prices during the Class Period, causing millions of dollars of damages to the Class. On November 12, 2003, as shares traded at prices as high as $18.14, the Company sold 6,900,000 shares of its common stock for gross proceeds of approximately $119 million.
On January 13, 2004, the Company reported shocking news about the third in the series of Phase III clinical trials for the Company's new drug application submission. On this news, the price of Adolor's stock plunged 37%, trading as low as $13.73 per share, on an unprecedented volume of 12.7 million shares.
If you purchased Adolor securities during the period from September 23, 2003 through January 14, 2004, inclusive, you may, no later than June 21, 2004, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. If you have sustained substantial losses in Adolor securities during the Class Period, please contact Berger & Montague, P.C. for a more thorough explanation of the Lead Plaintiff selection process.
The law firm of Berger & Montague, P.C. has over 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm has represented investors as lead counsel in actions against companies including Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class
interests." In Re: IKON Offices Solutions Securities Litigation.
Civil Action No. 98-4286(E.D. Pa.) (partial settlement for
$111 million approved May 2000).
"...(Y)ou have acted the way lawyers at their best ought to act.
And I have had a lot of cases...in 15 years now as a judge and I
cannot recall a significant case where I felt people were better
represented than they are here ... I would say this has been the
best representation that I have seen." In Re: Waste Management,
Inc. Securities Litigation, Civil Action No. 97-C 7709 (N.D.
Ill.) (settled in 1999 for $220 million).
If you purchased Adolor securities during the Class Period, please visit our website at www.bergermontague.com to view the complaint and join the class action or if you have any questions concerning this notice or your rights with respect to this matter, please contact:
Sherrie R. Savett, Esquire
Douglas M. Risen, Esquire
Diane Werwinski, Investor Relations Manager
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
Phone: 888-891-2289 or 215-875-3000
Fax: 215-875-5715
Website: http://www.bergermontague.com
e-mail: InvestorProtect@bm.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.