HAVERFORD, Pa., June 13 LAWFUEL – Press Release Service — Chimicles & Tikellis LLP is
issuing an update on the securities class actions against Discovery
Laboratories, Inc. (Nasdaq: DSCO) (“Discovery Labs”) pending in the United
States District Court for the Eastern District of Pennsylvania.
We had previously issued a release on June 1, 2006, updating investors
on an Order entered by the United States District Court for the Eastern
District of Pennsylvania directing, among other things, that “by July 17,
2006, any member of the purported class may move to serve as lead
plaintiff.” The Court has reconsidered that Order, and, on June 5, 2006
amended its Scheduling Order to provide that the deadline for any member of
the Class to apply to serve as lead plaintiff is June 30, 2006.
Discovery Labs is a development stage biotechnology company, which is
focused upon proprietary surfactant technology. Surfactants are produced
naturally in the lungs and are essential for breathing. The Company’s
technology is intended to produce a precision-engineered surfactant that is
designed to closely mimic the essential properties of natural human lung
surfactant; this technology is intended for use as surfactant replacement
therapies for respiratory diseases. The Company’s lead product, Surfaxin(R)
(lucinactant) was undergoing review by the FDA as part of a new drug
application as a potential treatment to prevent respiratory distress
syndrome in infants. Surfaxin(R) was also under review by the European
Medicines Evaluation Agency for approval in Europe.
Chimicles & Tikellis LLP and Durant & Durant LLP represent the
plaintiff in one of the actions, DePace v. Discovery Laboratories, Inc.,
No. 2:06-cv- 02045-SD. The amended complaint in the DePace action alleges
claims under Sections 10(b) and 20(a) of the Securities Exchange Act of
1934 and Rule 10b-5 against Discovery Labs, Robert J. Capetola, its Chief
Executive Officer, and Christopher J. Schaber, its former Chief Operating
Officer. Specifically, the complaint alleges that the defendants issued a
series of press releases and SEC filings that were false and misleading
because they falsely portrayed the Company’s capacity to manufacture
Surfaxin(R) in compliance with the FDA’s current Good Manufacturing
Requirements, a requirement had to be met before the FDA would grant
approval to that product. Throughout the Class Period, the defendants’
public statements indicated that they expected that approval of the new
drug application for Surfaxin(R) would occur in the near future. Instead,
on April 24, 2006, the Company announced that it faced the potential of a
significant delay in the approval process for Surfaxin(R) because process
validation batches manufactured for its NDA had not met required stability
criteria. Stability relates to the ability of a pharmaceutical product to
be stored without degradation. Discovery Labs’ common stock swiftly
reacted, closing substantially lower on April 25, 2006 on very high volume.
A copy of the amended complaint filed in this action is available from the
Court, and it can also be viewed at http://www.chimicles.com.
If you are a member of the Class, then you may move the Court to serve
as lead plaintiff of the Class on or before June 30, 2006.
If you would like to consider serving as a lead plaintiff or have any
questions about this class action, please contact James R. Malone, Jr.
([email protected]) or Joseph G. Sauder
([email protected]) by email or by phone at 1-888-805-7848.
Chimicles & Tikellis LLP is a leading class action law firm with a
national practice and with significant experience representing investors in
class actions under the federal securities laws. Please go to our web site
if you would like more information about our firm.