A class action has been filed against Isolagen, Inc. (ILE), certain of its officers and directors by stockholders who purchased the company's common stock between March 3, 2004 and August 1, 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.

According to a press release dated August 18, 2005, the complaint charges Isolagen and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Isolagen specializes in the development and commercialization of autologous cellular therapies for soft and hard tissue regeneration (the "Isolagen Process"). Autologous cellular therapy utilizes a process whereby a patient's own cells are extracted, allowed to multiply and then injected into the patient. In January 2003, defendants began phase I clinical trials aimed at demonstrating the safety and efficacy of using the Isolagen Process to treat dermal defects.

Specifically, the complaint alleges that without solid clinical data developed under controlled conditions, the data gathered in the clinical trials would never meet the FDA's "adequate and well-controlled" criteria for acceptable clinical trials and the Company's business plan would lack credibility to the investment community. Defendants' own internal testing showed the Isolagen Process had demonstrated nowhere near the efficacy required to obtain FDA approval, which was needed to make the Company profitable. However, during the Class Period, defendants touted the efficacy of the Isolagen Process both for dermal and dental treatments, running up the Company's stock price to a Class Period high of $12 per share on April 2, 2004.

The complaint further alleges that on or around August 1, 2005, the Company disclosed that the preliminary results from its phase III clinical trial of the Isolagen Process for the treatment of contour deformities (wrinkles) had not met all four primary end points and that neither of the two dermal studies had achieved independent statistical significance. On this news, the Company's stock price plummeted more than 45%, from $5.50 per share to below $3 per share, on very high volume.

A similar, purported class action complaint was also filed in the U.S. District Court for the Eastern District of Pennsylvania.

If you bought Isolagen, Inc. securities between March 3, 2004 and August 1, 2005, inclusive, and would like to obtain information about the Isolagen, Inc. lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.