BALA CYNWYD, Pa., March 28, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all purchasers of the common stock of ViroPharma, Inc. ("ViroPharma" or the "Company") (Nasdaq:VPHM) from July 13, 1999 through March 19, 2002, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges ViroPharma, Inc. and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that throughout the Class Period, Defendants made highly positive statements regarding the Company's Drug Picovir. ViroPharma represented that its growth was contingent on U.S. Food and Drug Administration ("FDA") approval of its' Picovir (pleconaril) drug as a cure for the common cold. ViroPharma informed the investing public of every positive part of the Picovir studies. The Company insisted that treatment was well tolerated and that adverse events were comparable to placebo in the trials. The Company issued numerous press releases which praised the effectiveness of Picovir and minimized and concealed the potential obstacles to FDA approval.
However, on March 19, 2002, trading on the stock was halted as the Company revealed that an FDA advisory committee voted 15-0 against approval of Picovir because of safety concerns. On March 20, 2002, after the resumption of trading, shares of ViroPharma plummeted 60 percent. The 15-member FDA committee had questions about the safety of the drug in women taking oral contraceptives and in the elderly. In addition, the committee asked for broader studies on the drug's benefits with minorities, the elderly, patients with asthma and chronic bronchitis, children, and more about the drug's interaction with other medications. They also expressed concern that the drug may develop drug-resistant cold germs. The FDA pointed out that the drug had several significant side effects, with headache the most frequently cited.
There were tremendous obstacles for ViroPharma to overcome before it could receive regulatory approval for Picovir. These obstacles, as enumerated by the FDA as set forth above, were undisclosed during the Class Period, but were well known to defendants by virtue of their testing and trials of this drug on thousands of people for several years.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, LLP, which has significant experience and expertise prosecuting class actions on behalf of investors and shareholders. For more information on Schiffrin & Barroway, or to sign-up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than May 26, 2002, 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.
More information on this and other class actions can be found on the lass Action Newsline at www.primezone.com/ca