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Case ID: 4213 | Stocks | 03/02/2005
A class action lawsuit has been filed in the United States District Court for the District of New Jersey, on behalf of all persons who purchased the common stock of Pharmos Corp. ("Pharmos" or the "Company") [Nasdaq:PARS] between May 5, 2003 and December 17, 2004, inclusive, (the "Class Period") against defendants Pharmos and certain officers of the Company. The case name is Ginzburg v. Pharmos Corp., et al.
The complaint alleges that defendants violated the federal securities laws by issuing materially false and misleading statements throughout the Class Period that had the effect of artificially inflating the market price of the Company's securities. Beginning in 2001, the Company initiated Phase III trials to determine the efficacy of Dexanabinol, its primary candidate under development, for the treatment of traumatic brain injury. By November 2002, 400 patients had been enrolled in studies conducted in Europe and Israel, and in July 2003, the Company initiated enrollment of U.S. patients in the Phase III trial. During these studies, a single dose of Dexanabinol would be administered to a patient having suffered dramatic brain injury. To show efficacy, it needed to be demonstrated that administration of Dexanabinol resulted in patients regaining more of their memory and motor skills than those who received a placebo. The efficacy of Dexanabinol on each individual patient was determined at six months after enrollment through the application of the Glasgow Outcome Scale - Extended (GOSE). The Complaint alleges that beginning May 5, 2003, defendants began a campaign of touting the efficacy of Dexanibinol, causing the stock price to increase from $1.20 per share on May 5, 2003 to as high as $5 during the Class Period. On December 20, 2004, defendants shocked the investing public when they issued a press release announcing the results from the Phase III trial of Dexanabinol. According to the press release, Dexanabinol did not show a neuroprotective effect in the Phase III trial consisting of 861. Essentially, the trial results indicated that Dexanabinol was ineffective for treating traumatic brain injuries. Due to this revelation, shares of Pharmos fell precipitously from $3.50 per share to $1.18 per share, losing approximately 65% of their value. While the Company's public investors suffered millions of dollars in damages, Pharmos executives sold millions of dollars worth of Pharmos stock and insured their continued positions of employment as a result of the Company raising over $40 million by issuing stock to the public at inflated levels. If you lost money in this stock, call now to speak to a lawyer toll free at 1-866-467-1400, or make a claim on this page. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest A class action has been filed against LaBranche & Company, Inc. (NYSE: LAB) and certain of its officers and directors by stockholders who purchased the company's common stock between January 25, 2000, and October 15, 2003. The action claims 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. A class action has been filed against Carrier Access Corporation (NasdaqNM:CACSE) formerly (NasdaqNM:CACS), certain of its officers and directors by stockholders who purchased the company's common stock between October 21, 2003 and May 20, 2005. The action claims 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. Several class actions have been filed against premium bulk wine supplier Golden State Vintners, Inc. (Nasdaq:VINT), and certain of its officers and directors by stockholders who purchased the company's common stock between December 23, 2003, and April 23, 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 mutual fund scandal continues to gather momentum. Several class actions have been filed against mutual fund manager Franklin Resources, Inc. (NYSE: BEN) and numerous Franklin funds by investors who purchased shares of the funds between February 6, 1999, to February 4, 2004. The actions claim that the defendants violated federal securities laws by allowing certain favored investors to engage in 'timing' of the Funds' securities. Several class actions have been filed against Central Freight Lines, Inc. (Nasdaq: CENF) and certain of its officers and directors by stockholders who purchased the company's common stock pursuant to its December 12, 2003, initial public offering. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market, thereby artificially inflating the price of the company's securities. A class action has been filed against HCA, Inc. (HCA), certain of its officers and directors by stockholders who purchased the company's common stock between January 12, 2005 and July 12, 2005. The action claims 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. |
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