PHILADELPHIA, Jan. 9, 2003 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was filed on November 15, 2002 in the United States District Court for the District of Massachusetts, on behalf of all persons and entities who purchased or otherwise acquired the common stock and/or bonds of Sepracor Inc. (Nasdaq:SEPR) ("SEPRACOR" or the "Company"), between May 17, 1999 and March 6, 2002, inclusive (the "Class Period").
The action, numbered 02-CV-12235, is pending in the United States District Court, District of Massachusetts located at 1 Courthouse Way, Boston, MA 02210, against defendants Sepracor, Inc., Paul D. Rubin, M.D., Timothy J. Barberich, David P. Southwell. The Honorable Morris E. Lasker is presiding over the case. A copy of the Complaint is available from the Court or the Law Offices Bernard M. Gross, P.C. Please contact us by phone at 866-561-3600 (toll free) or by E-mail at susang@bernardmgross.com.
The complaint charges Sepracor, Paul D. Rubin, M.D., Executive Vice President, Drug Development and ICE Research, Timothy J. Barberich, Chief Executive Officer and Chairman of the Board of Directors, David P. Southwell, Executive Vice President, Chief Financial Officer and Secretary with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5, by issuing a series of materially false and misleading statements to the market during the Class Period. As alleged in the Complaint, throughout the Class Period, defendants issued press releases stating (a) they were "confident" that the FDA would approve the Company's antihistamine drug, Soltara, by March 2002, followed by Soltara's launch in the summer of 2002; (b) that there was no evidence that Soltara caused cardiac effects; (c) that the Company had tested Soltara for such periods and in such doses that the drug had reached the maximum accumulation in patients' bodies without adverse effects; and (d) that the FDA had told the Company that the Company's safety testing of Soltara was sufficient to allay any concerns about cardiac effects of Soltara. In fact, as defendants admitted in March 2002, at and after the end of the Class Period (a) Soltara had caused cardiomyopathy, an adverse, potentially fatal cardiac effects, in rats, as well as phospholipidosis, a serious liver disorder, in dogs; (b) the Company had not tested Soltara at the maximum concentrations in patients' bodies and, therefore, had not shown that Soltara would not cause cardiac effects in any patient treated with the drug; and (c) the FDA had not told the Company that its safety studies of Soltara were sufficient to allay concerns about cardiac effects. In addition, in the Company's studies of Soltara in animals, dogs treated with Soltara had experienced Qt prolongation, the very effect that caused earlier antihistamines to be withdrawn from the market due to deaths in some patients. Had these facts been known to the investing public, it would have been apparent that it was highly improbable that Soltara would be approved by the FDA based on the existing evidence from the Company's testing of the drug. On March 7, 2002, the Company revealed that the FDA had declined to approve the Company's application to market Soltara because of facts defendants had misrepresented, these disclosures caused the market price of Sepracor securities to fall precipitously. Thus, the price of the Company's 7% convertible subordinated debentures fell from approximately par prior to the March 7 announcement to approximately $67 per $100 after the announcement. The market price of Sepracor securities declined almost 60% on trading volume of nearly 52.3 million shares, which was approximately 70% of Sepracor's outstanding stock.
Plaintiff seeks to recover damages on behalf of Class members and is represented by the law firm of Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions.
If you bought the common stock and/or bonds of Sepracor between May 17, 1999 and March 6, 2002, you may, no later than January 20, 2003, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or rights or interests with respect to these matters,
PLEASE CONTACT: Law Offices Bernard M. Gross, P.C.
Deborah R. Gross, Esquire
Susan R. Gross, Esquire
1515 Locust Street, Second Floor
Philadelphia, PA 19102
Telephone: 866-561-3600 (toll-free)
or 215-561-3600
E-mail: susang@bernardmgross.com or
debbie@bernardmgross.com.
Website: http://www.bernardmgross.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca