NEW YORK – April 15, 2004 -The law firm of Milberg Weiss Bershad Hynes & Lerach LLP announces that a class action lawsuit was filed on April 15, 2004, on behalf of purchasers of the securities of Vaso Active Pharmaceutical, Inc. (“Vaso” or the “Company”) (OTC: VAPH.PK) between December 11, 2003 and March 31, 2004, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”). A copy of the complaint filed in this action is available from the Court (from the office of the Clerk of Court), and may also be obtained by emailing Milberg Weiss at [email protected]
The action is pending in the United States District Court for the District of Massachusetts, against defendants Vaso, John J. Masiz (President and CEO), and Stephen G. Carter (Chief Scientific Officer). According to the complaint, defendants violated sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5, by issuing a series of material misrepresentations to the market during the Class Period.
The complaint alleges that throughout the Class Period, Vaso issued press releases, and filed financial reports with the SEC, touting the Company’s clinical trial of its anti-fungal product as being “revolutionary”, and stated that the trial was supervised by a team of independent physicians, analyzed by the New England Medical Center of Boston, and endorsed by the American Association of Medical Foot Specialists. The complaint charges that defendants’ assertions were grossly misleading because (1) the New England Medical Center had nothing to do with the study associated with the trial, it was not involved in the selection of patients for the trial, and it had not analyzed the trial results or drawn any conclusions of its effectiveness; (2) the trial was supervised by one podiatrist, not a group of independent physicians, who was selected by the Company’s majority shareholder and compensated by the Company; (3) the Company’s so-called “clinical trial” was more than half a decade old; (4) the Association of Medical Foot Specialists is not widely known in the medical community, and its endorsement of Vaso’s product was bargained for in exchange for a donation by Vaso to the Association’s scholarship program; and (5) there was little, if any, institutional demand for Vaso’s securities.
On April 1, 2004, before the market opened, the Securities and Exchange Commission issued a press release announcing the temporary suspension of trading of Vaso stock because of “questions regarding the accuracy of assertions by VAPH (Vaso) and by others. . . concerning, among other things: (1) FDA approval of certain key products, and (2) the regulatory consequences of the future application of their primary product.” Moreover, on April 7, 2004, Vaso announced that the Company had received a letter from the Nasdaq Listing Investigations department regarding Vaso’s compliance with Nasdaq listing requirements. In response to the Nasdaq letter, Vaso stated “In view of the substantial administrative and cash burdens being borne by the Company at this time, the Company has determined that it is in the best interest of shareholders to voluntarily cause its shares to be removed from Nasdaq”.
If you bought the securities of Vaso between December 11, 2003 and March 31, 2004, inclusive and sustained damages, you may, no later than June 7, 2004, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss Bershad Hynes & Lerach LLP, or other counsel of your choice, to serve as your counsel in this action.
Milberg Weiss Bershad Hynes & Lerach LLP (http://www.milberg.com) is a 190-lawyer firm with offices in New York City, San Diego, San Francisco, Los Angeles, Boca Raton, Philadelphia and Seattle, and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others, and has been responsible for more than $20 billion in aggregate recoveries. Please contact the Milberg Weiss website for more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys: