NEW YORK, Jan. 7, 2005 (PRIMEZONE) -- Attorney Christopher Gray of the Law Office of Christopher J. Gray, P.C. in New York City ((212) 838-3221 or gray@cjgraylaw.com) filed a class action lawsuit on January 7, 2005 on behalf of all persons who purchased, converted, exchanged or otherwise acquired the securities of defendant GeoPharma, Inc. (Nasdaq:GORX) between July 13, 2004 and December 2, 2004, inclusive. The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated by the SEC thereunder and seeks to recover damages. Any member of the class may move the Court to be named lead plaintiff. If you wish to serve as lead plaintiff, you must move the Court no later than January 31, 2005.
The GeoPharma class action lawsuit is pending in the U.S. District Court for the Southern District of New York (500 Pearl Street, New York, New York), Docket No. 05-CV-188, and has been assigned to the Hon. Shira H. Scheindlin, U.S. District Judge. According to the complaint, defendants made misstatements of material facts and omitted to state material facts in violation of the federal securities laws, including in a press release on December 1, 2004 in which defendants publicized the supposed U.S. Food and Drug Administration ("FDA") approval of a product known as "Mucotrol," which defendants characterized as in the nature of a prescription drug. According to the complaint defendants claimed that Mucotrol could generate sales of up to $300 million per year. The complaint alleges that, unbeknownst to the public and contrary to defendants' claims, the FDA did not categorize Mucotrol as a prescription drug, did not approve Mucotrol, and in fact permitted Mucotrol to be sold only because it was categorized as a medical device that did not require FDA approval.
The lawsuit alleges that after reporters discovered that (contrary to defendants' press release and other statements) Mucotrol was not really an FDA-approved drug, but was merely a medical device that the FDA was permitting to be sold, and after GeoPharma acknowledged that Mucotrol was not really a drug, GeoPharma's stock, which had rocketed to as high as $11.25 on the news of Mucotrol's "approval," plunged to $6.81. GeoPharma's share price has since sunk to as low as $4.55 per share in after hours trading on January 7, 2005, a drop of 60% in a little over one month.
The class action lawsuit seeks to recover investors' losses resulting from defendants' alleged misrepresentations concerning Mucotrol.
The Law Office of Christopher J. Gray, P.C.'s practice is concentrated in complex litigation, class action litigation, securities arbitration, and trials and appeals in all state and federal courts. Attorney Christopher Gray has represented plaintiffs in several significant securities class actions, including against major companies such as Excite@Home, American Express Co., and Electronic Data Systems Corp. In 2002, Mr. Gray investigated and filed the first class action complaint alleging accounting fraud against WorldCom. (In re Worldcom Corp. Securities Litig., S.D.N.Y. Docket No. 02-CV-3288 (DLC)(alleging accounting fraud in April 2002, some six weeks before news of massive accounting fraud broke). Mr. Gray's former law firm won what is reportedly the largest recovery of all time under the Commodities Exchange Act ($145.35 million) in In re: Sumitomo Copper Litigation, a class action against various parties who conspired to manipulate the worldwide copper and copper futures markets.
Investors who acquired the securities of GeoPharma, Inc. between July 13, 2004 and December 2, 2004 may contact attorney Christopher Gray at the telephone number, address or e-mail address below with any questions about their investment losses or for more information concerning the GeoPharma class action lawsuit.