HARTFORD, Conn., July 30, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased the publicly traded securities of GPC Biotech AG ("GPC Biotech") (Nasdaq:GPCB) between December 5, 2005 and July 24, 2007, inclusive (the "Class Period").
The Complaint charges that GPC Biotech and certain of its officers and directors violated federal securities laws. Specifically, Defendants issued a series of materially false disclosures during the Class Period thereby artificially inflating the price of GPC Biotech securities. GPC Biotech has spent several years attempting to successfully develop its key drug Satraplatin, and needed to convince investors that it was making substantial progress toward Satraplatin's "early" approval in order to obtain continued funding. Unbeknownst to investors, the required Satraplatin Phase 3 drug trial employed improper methods for measuring whether Satraplatin was effective. The Defendants knew this since they were experienced in pharmaceutical development and testing. Moreover, Defendants were specifically warned by FDA representatives in connection with the Phase 3 trial that the protocols to be used were deviating from accepted methodologies. Thus Defendants knew that there was a substantial chance that the FDA would not grant any quick approval to the drug.
On July 24, 2007, the FDA announced that its oncology panel had unanimously recommended against the approval of Satraplatin. The committee said the FDA had no prior experience with the protocols used in the Phase 3 study, which the FDA noted had been "clearly communicated" to GPC Biotech while the drug was in development. On July 25, 2007, GPC Biotech stock fell $7.20 to close at $13.16.
If you are a member of the class, you may, no later than September 24, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.