MAXM Maxim Pharmaceuticals (MM)

Shareholder Class Action Filed Against Maxim Pharmaceuticals, Inc. by the Law Firm of Schiffrin & Barroway, LLP BALA CYNWYD, Pa., Sept. 24 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP: Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of California on behalf of all securities purchasers of Maxim Pharmaceuticals, Inc. (NASDAQ:MAXM) ("Maxim" or the "Company") from November 11, 2002 through September 17, 2004, inclusive (the "Class Period"). 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 Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Darren J. Check, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at . The complaint charges Maxim, Larry G. Stambaugh, and Anthony E. Altig with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the addition of Ceplene to IL-2 did not demonstrate an improvement in overall survival for patients with advanced malignant melanoma with liver metastases; (2) that the FDA had previously rejected the Company's application for Ceplene because a prior trial showed no evidence that the drug improved survival for skin cancer patients; (3) that despite knowing and/or recklessly disregarding the aforementioned facts, the defendants nevertheless portrayed to the market that Ceplene was a viable product that was approved by the FDA; and (4) that as a result of the above, the defendants' statements concerning Ceplene were lacking in any reasonable basis when made. On September 19, 2004, Maxim announced that its confirmatory M104 Phase 3 trial of the investigational drug Ceplene in combination with interleukin-2 for the treatment of advanced malignant melanoma patients with liver metastases failed to demonstrate an improvement in overall patient survival, the primary endpoint. News of this shocked the market. Shares of Maxim fell $2.90 per share, or 48.82 percent, to close at $3.04 per share, on September 20, 2004. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/. If you are a member of the class described above, you may, not later than November 22, 2004, move the Court to serve as lead plaintiff of the class, if you so choose. 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 Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action. CONTACT: Schiffrin & Barroway, LLP Marc A. Topaz, Esq. Darren J. Check, Esq. Three Bala Plaza East, Suite 400 Bala Cynwyd, PA 19004 1-888-299-7706 (toll-free) or 1-610-667-7706 Or by e-mail at DATASOURCE: Schiffrin & Barroway, LLP CONTACT: Marc A. Topaz, Esq. or Darren J. Check, Esq., Schiffrin & Barroway, +1-888-299-7706 or +1-610-667-7706, Web site: http://www.sbclasslaw.com/

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