BALA CYNWYD, Pa., June 21, 2002 (PRIMEZONE) -- Shareholders of DOV Pharmaceutical, Inc. ("DOV" or the "Company") (Nasdaq:DOVP) who desire to serve as a lead plaintiff in a shareholder class action lawsuit now pending in federal court in New York (02-CV-3538) must submit an application with the Court by July 1, 2002 according to the law firm of Schiffrin & Barroway, LLP.
The lawsuit seeks damages for violations of the federal securities laws on behalf of all investors who purchased DOV Pharmaceutical, Inc. securities pursuant and/or traceable to its initial public offering (the "Offering") on April 25, 2002 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of DOV Pharmaceutical, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that the New Jersey-based DOV Pharmaceutical, Inc., just before the Offering priced, made a last-minute change to its Offering documents to reflect a revision of its 1999 financial results for a joint venture in Bermuda with Elan Corp. The accounting change widened the Company's net loss at the venture, known as DOV Bermuda Ltd., to $11.9 million in 1999, from a previously reported loss of $10.2 million. The complaint alleges that this change was deeply buried in the revised documents where it was very difficult, if not impossible, for investors to see and evaluate prior to the commencement of the trading. As a result, the complaint alleges, investors were deprived of the opportunity to rely on the Company's new financial information, causing a steep decline in the price of the Company's shares once they began to be publicly traded and the Company's true financial information became known.
When DOV shares finally opened for trading for the first time, the price of DOV shares began trading at $11.25 per share (after having been priced at $13 per share) and reached an intra-day high of $12 per share. By the end of the day, the stock had closed at $8.70 per share, or 33% below the offering price, making it one of the worst-performing IPOs of the past two years.
If you purchased DOV Pharmaceutical, Inc. securities pursuant and/or traceable to its initial public offering (the "Offering") on April 25, 2002, you may be a member of the class and have until July 1, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca