Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit against PharmaNet Development Group, Inc.
November 20 2008 - 2:24PM
Business Wire
Coughlin Stoia Geller Rudman & Robbins LLP (�Coughlin Stoia�)
(http://www.csgrr.com/cases/pharmanet/) today announced that a
class action has been commenced in the United States District Court
for the District of New Jersey on behalf of purchasers of PharmaNet
Development Group, Inc. (�PharmaNet� or the �Company�)
(Nasdaq:PDGI) common stock during the period between November 1,
2007 and April 30, 2008 (the �Class Period�). If you wish to serve
as lead plaintiff, you must move the Court no later than 60 days
from today. If you wish to discuss this action or have any
questions concerning this notice or your rights or interests,
please contact plaintiff�s counsel, Samuel H. Rudman or David A.
Rosenfeld of Coughlin Stoia at 800/449-4900 or 619/231-1058, or via
e-mail at djr@csgrr.com. If you are a member of this class, you can
view a copy of the complaint as filed or join this class action
online at http://www.csgrr.com/cases/pharmanet/. Any member of the
putative 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 charges PharmaNet and
certain of its officers and directors with violations of the
Securities Exchange Act of 1934. PharmaNet is a drug development
services company that maintains offices and facilities in North
America, Europe, South America, Asia, Africa and Australia and has
clients in the branded pharmaceutical, biotechnology, generic drug
and medical device industries. The complaint alleges that the
representations contained in PharmaNet�s press releases, SEC
filings, conference calls and presentations during the Class Period
were materially false and misleading when made because they failed
to disclose that: (i) the Company�s backlog contained numerous
contracts which were likely to be cancelled; (ii) the Company had
ramped up expenses in order to perform contracts even though there
was a substantial likelihood that the contracts would be cancelled;
(iii) the Company was entering into contracts with highly risky
biotechnology and pharmaceutical companies where the risk that the
contract would be cancelled was greatly increased; and (iv) given
the above factors, defendants lacked a reasonable basis for their
positive statements about the Company, its business, backlog and
earnings guidance. According to the complaint, on April 30, 2008,
PharmaNet issued a press release announcing its financial results
for the first quarter of 2008. For the quarter, the Company
reported direct revenue of $86.8 million and backlog of $482.9
million. In response to the announcement, the price of PharmaNet
stock dropped from $23.86 per share to $17.10 per share on
extremely heavy trading volume. Plaintiff seeks to recover damages
on behalf of all purchasers of PharmaNet common stock during the
Class Period (the �Class�). The plaintiff is represented by
Coughlin Stoia, which has expertise in prosecuting investor class
actions and extensive experience in actions involving financial
fraud. Coughlin Stoia, a 190-lawyer firm with offices in San Diego,
San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C.,
Philadelphia and Atlanta, is active in major litigations pending in
federal and state courts throughout the United States and has taken
a leading role in many important actions on behalf of defrauded
investors, consumers, and companies, as well as victims of human
rights violations. The Coughlin Stoia Web site
(http://www.csgrr.com) has more information about the firm.
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