NEW YORK, Jan. 10, 2002 (PRIMEZONE) -- The law firm of Milberg Weiss Bershad Hynes & Lerach LLP announces that a class action lawsuit was filed on January 8, 2002, on behalf of purchasers of the securities of ImClone Systems, Inc. ("ImClone" or the "Company") (Nasdaq:IMCL) between June 28, 2001 and December 28, 2001, inclusive. A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss' website at: http://www.milberg.com/imclone/
The action, numbered 02-CV-136, is pending in the United States District Court, Southern District of New York, located at 500 Pearl Street, New York, N.Y. 10007, against defendants ImClone, Samuel D. Waksal, Harlan W. Waksal, Robert F. Goldhammer, John Mendelsohn, William R. Miller, Paul B. Kopperl, David M. Kies and Richard Barth. The Honorable Richard Owen is presiding over the case.
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 issuing materially false and misleading statements to the market. Throughout the Class Period, defendants issued multiple press releases highlighting the successful progress of its "Fast-Track" application to the U.S. Food and Drug Administration ("FDA") for approval of IMC-C225, its blockbuster drug used for the treatment of colorectal cancer and also known as Erbitux, and the positive impact that the drug's approval would have on the Company's revenues. As alleged in the Complaint, these statements were materially false and misleading because, among other things, (i) defendants failed to comply with the FDA's requirements for filing the "Fast Track" application for approval of Erbitux; and (ii) as such, defendants knew, or should have known, that their deficient application would be rejected and would thus negatively impact the Company's future earnings. The Complaint further alleges that defendants filed their application, despite lacking the skill and expertise to make a proper filing, in order to convince Bristol-Myers Squibb Co. ("Bristol-Myers") to purchase at least $1 billion in ImClone stock, of which approximately $150 million was tendered by ImClone insiders, including the individual defendants, and to convince Bristol-Myers to make an additional $1 billion cash investment in the Company.
On Friday evening, December 28, 2001, ImClone disclosed that the FDA had refused to accept the Company's deficient and defective application for approval of Erbitux, confirming almost two weeks of speculation that had already driven down the price of ImClone's stock by 21%, from a Class Period high of $73.83 per share on December 5, 2001 to $55.25 per share at the close of regular trading on December 28, 2001. Immediately following this shocking revelation, however, shares of ImClone dropped precipitously, falling $5.25 per share in after hours trading, or 9.5%, to close that session at $50 per share. On December 31, 2001, shares of ImClone continued to trade lower, and closed at $46.46 per share.
If you bought the securities of ImClone between June 28, 2001 and December 28, 2001, you may, no later than March 8, 2002, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss Bershad Hynes & Lerach LLP, or other counsel of your choice, to serve as your counsel in this action.
Milberg Weiss Bershad Hynes & Lerach LLP, a 190-lawyer firm with offices in New York City, San Diego, San Francisco, Los Angeles, Boca Raton, Seattle and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of World War II and other human rights violations, and has been responsible for more than $30 billion in aggregate recoveries. The Milberg Weiss Web site (http://www.milberg.com) has more information about the firm.
If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys:
Steven G. Schulman or Samuel H. Rudman One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 Phone number: (800) 320-5081 Email: ImClonecase@milbergNY.com Website: http://www.milberg.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.