HARTFORD, Conn., June 7, 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 common stock of Telik, Inc. ("Telik") (Nasdaq:TELK) between March 27, 2003 and June 4, 2007, inclusive (the "Class Period"). Also included are those who purchased in Telik's November 5, 2003 and January 28, 2005 stock offerings.
The Complaint alleges that Telik, and certain of its officers, directors and underwriters violated Federal Securities laws. Specifically, defendants made false statements concerning FDA approval of TELCYTA, Telik's lead product candidate in the treatment of platinum-resistant or refractory ovarian cancer and small-cell lung cancer. Though Defendants represented that TELCYTA was safe and effective and that Telik had conducted sufficient clinical studies to prove it, subjects in the TELCYTA trials were dying at alarming rates and doctors were pulling other subjects out early. During the Class Period, Telik's stock traded as high as $29.04 per share.
On December 26, 2006, Telik announced that TELCYTA had failed three arms of its final clinical testing - showing no efficacy in two of the three arms and unreliable clinical data in two of the three arms. The stock fell 70% - from over $16 per share to below $5 per share. Telik's stock price fell by another 20% on June 4, 2007, following disclosure of just how badly the ovarian cancer arm of the TELCYTA trials had failed, and then nearly 30% to $3.42 per share on June 5, 2007, after the Company disclosed that the FDA had ordered Telik to immediately halt all TELCYTA clinical trials due to the alarming number of fatalities.
If you are a member of the class, you may, no later than August 6, 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@snlaw.net, or visit our website: www.snilaw.com.