NEW YORK, July 6, 2007 LAWFUEL – The Legal Newswire — The Brualdi Law Firm announces that a securities class action lawsuit has been commenced in the United States District Court for the Southern District of New York
on behalf of purchasers of Threshold Pharmaceuticals, Inc.
(“Threshold”) (Nasdaq:THLD) common stock during the period between
February 4, 2005 and July 14, 2006 (the “Class Period”).
No class has yet been certified in the above action. Until a class is
certified, you are not represented by counsel unless you retain one. If
you purchased Threshold common stock during the period described above,
you have certain rights, and have until no later than 60 days from July
5, 2007, in which to move for Lead Plaintiff status. Any member of the
purported class may move the Court to serve as lead plaintiff through
counsel of their choice, or may choose to do nothing and remain an
absent class member.
To be a member of the class you need not take any action at this time,
and you may retain counsel of your choice. If you wish to discuss this
action or have any questions concerning this Notice or your rights or
interests with respect to these matters, please contact Tali Leger,
Director of Shareholder Relations at The Brualdi Law Firm, 29 Broadway,
Suite 2400, New York, New York 10006, by telephone toll free at (877)
495-1877 or (212) 952-0602, by email to tleger@brualdilawfirm.com or
visit our website at http://www.brualdilawfirm.com/
The complaint charges Threshold and certain of its officers and
directors with violations of the Securities Exchange Act of 1934 and
the Securities Act of 1933. Threshold discovers, develops, and
commercializes small molecule therapeutics based on “Metabolic
Targeting.” During the Class Period, the Company’s lead product
candidate for the treatment of symptomatic benign prostatic hyperplasia
(“BPH”) was TH-070, a drug which utilized Threshold’s patented
Metabolic Targeting process.
The complaint alleges that in preparation for the Company’s February
2005 IPO, defendants conducted a so-called “Phase II” study of TH-070
on 30 men at Bari University in Italy. Based on the purported success
achieved in the Bari Phase II study, the Company completed its $37
million IPO in February 2005, conducted additional clinical trials,
filed a new drug application with the FDA in late 2005, and completed
the $65 million follow-on offering in October 2005. However, on May 11,
2006, defendants were forced to disclose that the FDA had placed the
TH-070 program on partial clinical hold as a result of abnormalities
observed in liver enzyme levels in six subjects in ongoing clinical
trials and had requested that the Company provide additional
information related to the drug’s acceptable dose and duration of
treatment in BPH patients. According to the complaint, while defendants
had known for years of TH-070’s propensity to cause liver toxicity, the
IPO and follow-on offering prospectuses concealed it.
Then, on July 17, 2006, the Company was forced to concede that TH-070
provided no benefit whatsoever in the alleviation of prostate
enlargement and that Threshold planned to discontinue development of
TH-070 for BPH altogether. The complaint alleges that as a result of
the defendants’ false and misleading statements issued during the Class
Period, Threshold stock traded as high as $16.52 per share. After the
Company’s July 17, 2006 announcement, however, Threshold stock fell to
$1.55 per share.
