A class action has been filed against Martek Biosciences Corporation (NasdaqNM:MATK), certain of its officers and directors by stockholders who purchased the company's common stock between December 09, 2004 and April 27, 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 purported shareholder class action lawsuits have been filed against Martek and certain of its present and former executive officers charging the defendants with violations of the Securities Exchange Act of 1934. More specifically, the complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that due to the Company's productions issues in the past, the defendants put in place a system by which they allowed their customers to build a moderate level of safety stock inventory; (2) that throughout the fourth quarter of fiscal year 2004 and the first quarter of fiscal year 2005, defendants manipulated its channels of distribution by flooding its major customers with inventory in excess of their allotted levels, so that Martek could meet its financial numbers and complete an$81.4 million stock offering; (3) as a result of defendants' channel manipulation, Martek's financial results were materially inflated; and (4)that as a result of the above, the Company's statements about its fiscal year2005 financial performance were lacking in any reasonable basis when made.

The complaint further alleges that on or around April 27, 2005, after the market closed, Martek provided an update o fits earnings estimates and production plan for fiscal year 2005. Martek revealed it anticipated a decrease in third quarter sales. News of this shocked the market. Shares of Martek, on April 28, 2005, fell $32.49 per share, or 45.9 percent, on unusually heavy trading volume.

If you bought Martek Biosciences Corporation securities between December 09, 2004 and April 27, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.