LAWFUEL – The Legal Newswire – HARTFORD, Conn.– The law firm of
Schatz Nobel Izard P.C., which has significant experience representing
investors in prosecuting claims of securities fraud, announces that a
lawsuit seeking class action status has been filed in the United States
District Court for the Southern District of New York on behalf of all
persons who purchased Threshold Pharmaceuticals, Inc. (“Threshold”)
(Nasdaq:THLD) common stock during the period between February 4, 2005
and July 14, 2006 (the “Class Period”), including purchasers in
Threshold’s February 4, 2005 initial public offering (“IPO”) and its
October 12, 2005 follow-on offering.
The Complaint charges Threshold and certain of its officers and
directors violated federal securities laws. Specifically, in
preparation for the IPO, defendants conducted a so-called “Phase II”
study of TH-070, its lead product candidate for the treatment of
symptomatic benign prostatic hyperplasia (“BPH”), at Bari University in
Italy. Based on the purported success of the Bari Phase II study,
Threshold 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 a $65 million follow-on offering in October
2005. However, on May 11, 2006, defendants disclosed 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 additional information
related to the drug’s acceptable dose and duration of treatment in BPH
patients. Although the defendants were aware of TH-070’s propensity to
cause liver toxicity, the IPO and follow-on offering prospectuses
concealed it.
On July 17, 2006, Threshold conceded that TH-070 provided no benefit
whatsoever in the alleviation of prostate enlargement and that
Threshold planned to discontinue its development. On this news,
Threshold fell to $1.55 per share.
If you are a member of the class, you may, no later than September 4,
2007, request that the Court appoint you as lead plaintiff of the
class. A lead plaintiff is a class member that acts on behalf of other
class members in directing the litigation. Although your ability to
share in any recovery is not affected by the decision whether or not to
seek appointment as a lead plaintiff, lead plaintiffs make important
decisions which could affect the overall recovery for class members,
including decisions concerning settlement. The securities laws require
the Court to consider the class member(s) with the largest financial
interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the
defendants, to view a copy of the Complaint initiating the class action
or for more information about the case, class action cases in general,
and your rights, please contact Schatz Nobel Izard P.C. toll-free at
(800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website:
www.snilaw.com.
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CONTACT: Schatz Nobel Izard P.C.
Wayne T. Boulton
Nancy A. Kulesa
(800) 797-5499
www.snilaw.com
firm@snilaw.com
