CONSHOHOCKEN, Pa.- LAWFUEL – Class Action Law News –Sept. 21, 2006–Goldman Scarlato & Karon, P.C., a law firm with offices in Pennsylvania and Ohio, announces that a lawsuit has been filed in the United States District Court for the Northern District of California, on behalf of persons who purchased or otherwise acquired publicly traded securities of Connetics Corporation (“Connetics” or the “Company”) (NASDAQ:CNCT) between June 28, 2004 and May 3, 2006, inclusive, (the “Class Period”). The lawsuit was filed against Connetics and certain officers and directors (“Defendants”).
If you are a member of this class and wish to view a copy of a complaint and join this class action, please e-mail us at [email protected] and request a copy of the complaint and a plaintiff certification. If you are a member of the Class, you may move the Court no later than November 17, 2006 to serve as a lead plaintiff for the Class. 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.
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that Defendants made false statements regarding one the Company’s important drugs – Velac, as well as reporting false financial results by failing to properly reserve for rebates. In particular, the complaint alleges that Defendants concealed critical information regarding carcinogenicity study data, as well as potential issues raised by the FDA which would influence the potential profitability of the drug for the Company. On May 3, 2006, Connetics announced that it would be unable to file its quarterly report in a timely manner due to the need to restate its financial results. Shares have reacted negatively to news, falling more than 60% from its Class Period high.
If you bought Connetics securities between June 28, 2004 and May 3, 2006, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (888) 668-4130 to speak with an advisor.