BOSTON, Jan. 11, 2005 (PRIMEZONE) -- An investor has sued AtheroGenics, Inc. ("AtheroGenics" or the "Company") (Nasdaq:AGIX), claiming the pharmaceutical company misled the public about the effectiveness of a new drug.
Berman DeValerio Pease Tabacco Burt & Pucillo (www.bermanesq.com) filed the class action on Jan. 10, 2005 in the U.S. District Court for the Northern District of Georgia, Atlanta Division. The lawsuit seeks damages for violations of federal securities laws on behalf of all investors who bought AtheroGenics securities from after hours trading on September 27, 2004 through and including December 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/AtheroGenics-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: AtheroGenics; Russell Medford, M.D., who was at all relevant times the Company's President, Chief Executive Officer, and Director; Mark Colonnese, who at all relevant times served as AtheroGenics' Chief Financial Officer, Senior Vice President of Finance and Administration, and Secretary; and Robert Scott, who at all relevant times served as Senior Vice President of Clinical Development and Regulatory Affairs and Chief Medical Officer.
The complaint alleges that, throughout the Class Period, AtheroGenics issued materially false and misleading statements regarding the results of its CART-2 Phase IIb clinical trial for its drug AGI-1067. Specifically, the Company materially overstated AGI-1067's effect on plaque volume in atherosclerosis patients, the lawsuit says.
On November 22, 2004, AtheroGenics stunned the public when it announced that results from a clinical trial indicated that AGI-1067 reduced plaque volume by only slightly more than half of what the Company previously reported. The Company further reported that the Phase IIb trial results indicated that the difference in the regression of plaque in arteries between treatment with AGI-1067 and Standard of Care regime was not statistically significant.
As a result of the announcement, shares of the Company's stock fell $4.87, or 15%, to close at $26.50 per share.
Then, on January 3, 2005, AtheroGenics further shocked investors by announcing that the Company would have to increase enrollment in its Phase III testing of AGI-1067 by 50%, from 4000 to 6000 patients, which would result in delays in completion of testing.
On this news, shares of AtheroGenics' stock fell an additional $4.84, or 20.5%, to close at $18.72.
Finally, on January 5, 2005, AtheroGenics announced that the SEC and NASD had commenced informal inquiries into the Company's September 27, 2004 disclosures of results from the CART-2 trial of AGI-1067.
If you purchased AtheroGenics securities from after hours trading on September 27, 2004 through and including December 31, 2004 you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Nicole R. Starr, Esq. Jeffrey C. Block, 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 March 7, 2005, which is 60 days from the filing of the first lawsuit. 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=532. Please note, you may also retain counsel of your choice and need not take any action at this time to be a class member.
For more information about Berman DeValerio Pease Tabacco Burt & Pucillo you may visit our website at www.bermanesq.com.