Several class actions have been filed against pharmaceutical research company Allos Therapeutics, Inc., (Nasdaq:ALTH) and certain of its officers and directors by stockholders who purchased the company's common stock between April 23, 2003, and April 29, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

Throughout the applicable period, Allos represented that whole brain radiation therapy combined with its main anticancer drug, RSR13, could treat brain cancer that had metastasized into breast cancer. It stated that its phase three study produced "consistent and compelling data" that the treatment regime was effective. RSR13 had been submitted to the Food and Drug Administration for approval during the period, amid repeated statements of efficacy from the defendants.

The action alleges that the company’s much-touted study was actually plagued with fatal design flaws that would make it a near certainty that the FDA’s Oncologic Drugs Advisory Committee would reject the application. Among the things, the treatment of patients with breast cancer was not even pre-specified in the study-- the study was designed to measure the effect of RSR13 plus whole brain radiation therapy on brain cancer, not patients whose brain cancer had spread to their breasts in the form of breast cancer. The action alleges that it was only after the study failed to show any statistically significant benefit in treating brain tumors that the research group handpicked the data to cobble together a subgroup consisting of persons showing a positive impact. As a result of this culling, patients in the breast cancer treatment group were allegedly less ill than those in the control group, a fact that would tend to skew results in favor of the treatment group.

On April 30, 2004, Reuters revealed that the Oncologic Drugs Advisory Committee had determined that the company’s claims of efficacy were “unconvincing”, in large part because the primary breast cancer subgroup was not specified before the clinical trial started. In reaction to this announcement, the price of Allos common stock plummeted, from $4.64 per share on April 29, 2004, to $2.55 per share on April 30, 2004. Materials subsequently made available by the FDA highlighted the glaring deficiencies in the company’s application and underlying study.

If you purchased securities issued by Allos Therapeutics during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by July 19, 2004. 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 your claim is typical of the claims of other class members, and that you will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiffs. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain any counsel of your choice to serve as you in this action, or you may choose to do nothing, and remain in the class as a silent member.