Shareholder Lawsuit Filed Against Northfield Laboratories, Inc., Berman DeValerio Pease Tabacco Burt & Pucillo Announces
March 31 2006 - 4:05PM
PR Newswire (US)
CHICAGO, March 31 /PRNewswire/ -- An investor sued Northfield
Laboratories, Inc., ("Northfield" or the "Company") (NASDAQ:NFLD)
today in federal court, accusing the Company of securities law
violations, Berman DeValerio Pease Tabacco Burt & Pucillo
announced. Berman DeValerio (http://www.bermanesq.com/) filed the
class action in the U.S. District Court for the Northern District
of Illinois. The complaint seeks damages for violations of federal
securities laws on behalf of all investors who purchased Northfield
Securities from February 20, 2004 through and including February
21, 2006 (the "Class Period"). To receive a copy of the complaint,
you may contact the court, call the firm at (800) 349-4612 or, go
to http://www.bermanesq.com/pdf/Northfield-Cplt.pdf. The lawsuit
claims that Northfield and an individual defendant violated
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934
("Exchange Act"), 15 U.S.C. Sections 78j(b) and 78t, and SEC Rule
10b-5, 17 C.F.R. Section 240.10b-5, promulgated there under.
Founded in 1985, Evanston, IL based Northfield Laboratories is a
development state Biotechnology Company. It primarily develops
PolyHeme, an oxygen-carrying blood substitute for the treatment of
urgent life-threatening blood loss in trauma and resultant surgical
settings. The complaint alleges that during the class period,
defendants issued a series of materially false and misleading
statements regarding the safety profile and history of PolyHeme. On
February 22, 2006, The Wall Street Journal reported in a story that
the data available to defendants from an ANH clinical trial using
PolyHeme, but not to the public, revealed the following: * Ten of
81 patients who received PolyHeme suffered a heart attack within
seven days, and two of those died. * None of the 71 patients in the
ANH clinical trial who received real blood were found to have
suffered a heart attack. Defendants in a press release on February
22, 2006, responding to The Wall Street Journal article, did not
dispute the data concerning the patient heart attacks and deaths
from the ANH clinical trial. Rather, defendants admit that they did
not publish the data concerning patient heart attacks and deaths.
The market was stunned by the disclosure of the secret, adverse
data from the long-closed ANH clinical trial and the market price
of Northfield's common stock fell with the belated disclosures. On
February 21, 2006, the day before the disclosure by The Wall Street
Journal, Northfield's common stock closed at a price of $12.23 per
share. On February 22, 2006, on extraordinary volume of more than
4.1 million shares, Northfield's common stock closed at a price of
$11.64 per share. The price continued to drop as the market
absorbed all of the news, including the announcement on February
24, 2006, by United States Senator Charles E. Grassley, Chairman of
the U.S. Senate Finance Committee, that he has begun an inquiry
into the matter. If you purchased Northfield Securities from
February 20, 2004 through and including February 21, 2006, you may
wish to contact the following attorneys at Berman DeValerio Pease
Tabacco Burt & Pucillo to discuss your rights and interests.
Leslie R. Stern, Esq. Joseph C. Merschman, Esq. 1 Liberty Square,
8th Floor Boston, MA 02109 (800) 516-9926 If you wish to apply to
be lead plaintiff in this action, a motion on your behalf must be
filed with the court no later than May 19, 2006. You may contact
the attorneys at Berman DeValerio to discuss your rights regarding
the appointment of lead plaintiff and your interest in the class
action, or you may submit information online at
http://www.bermanesq.com/Securities/Signup1.asp?caseid=567. Please
note, you may also retain counsel of your choice and need not take
any action at this time to be a class member. Berman DeValerio
Pease Tabacco Burt & Pucillo prosecutes class actions
nationwide on behalf of institutions and individuals, chiefly
victims of securities fraud, antitrust law violations, and consumer
fraud. The firm has 34 lawyers in Boston, San Francisco and West
Palm Beach. DATASOURCE: Berman DeValerio Pease Tabacco Burt &
Pucillo CONTACT: Joseph C. Merschman, Esq., or Leslie R. Stern,
Esq. both of Berman DeValerio Pease Tabacco Burt & Pucillo,
+1-800-516-9926, Web site: http://www.bermanesq.com/
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