PHILADELPHIA, Dec. 10 The law firm of Berger & Montague, P.C. has filed a class action in the U.S. District Court for the Eastern District of Pennsylvania that expands the proposed class period to include all purchasers of Hemispherx Biopharma, Inc. ("Hemispherx" or the "Company") (Amex: HEB) securities between February 18, 2009 and December 1, 2009, inclusive (the "Class Period"). The class period in the earlier lawsuit against the Company ended on October 30, 2009.
Investors who purchased Hemispherx securities during the Class Period may move the Court to appoint them as lead plaintiff, no later than January 11, 2010. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Investors in Hemispherx who wish to discuss this action or the lead plaintiff selection process may contact Berger & Montague, P.C., toll free at 1-888-891-2289, or by e-mail at [email protected]
A copy of the class action complaint can be viewed on Berger & Montage, P.C.'s Web site at www.bergermontague.com or may be requested from the Court: the case is Kletman v. Hemispherx Biopharma, Inc., et al., Case No. 09-cv-5870.
Hemispherx is a specialty pharmaceutical company engaged in the clinical development, manufacture, marketing, and distribution of new drug therapies for the treatment of viral and immune-based chronic disorders. The Company's products include Ampligen, an experimental drug undergoing clinical development for treatment of chronic fatigue syndrome.
The complaint alleges that Hemispherx and its principal officer and director violated the federal securities laws by making a series of false statements about postponements of action on Hemispherx's New Drug Application ("NDA") for Ampligen with the U.S. Food and Drug Administration ("FDA"). Specifically, the defendants portrayed the postponements as due to matters such as FDA staffing issues, while concealing that: (a) the delays were due to the Company's failure to submit a number of reports that had been requested by the FDA and which were necessary before review of the drug could be completed; (b) questions had been raised about the adequacy of data submitted with the NDA to demonstrate the drug's efficacy; and (c) the drug could not be approved unless the FDA waived its requirement for two rodent carcinogenicity studies. When Hemispherx belatedly disclosed this information on November 2, 2009, the price of Hemispherx stock dropped 22% from $1.45 per share, to close at $1.13 per share on November 3, 2009.
Then on December 1, 2009, after the market closed, Hemispherx announced that the FDA had denied the Ampligen NDA. The December 1, 2009 press release stated that the FDA concluded that the Company had not submitted "credible evidence of efficacy of Ampligen," and also lacked required testing for carcinogenicity in animals, which defendants admitted they had asked the FDA to waive. On this news, the price of Hemispherx stock dropped an additional 40% from $1.20 per share, to close at $0.71 per share on December 2, 2009.
Berger & Montague, founded in 1970, is a pioneer in class action litigation. The firm's approximately 70 attorneys concentrate their practice in complex litigation including securities fraud and corporate governance, antitrust, civil and human rights, consumer protection and environmental and mass torts, and have recovered several billion dollars for consumers and investors.
For more information about this case, please contact:Sherrie R. Savett, Esq.Carole A. Broderick, Esq.Eric Lechtzin, Esq.BERGER & MONTAGUE, P.C.1622 Locust StreetPhiladelphia, PA 19103Telephone: 1-888-891-2289 or 215-875-3000
SOURCE Berger & Montague, P.C.