Shareholder Class Action Filed Against Northfield Laboratories Inc. by the Law Firm of Schiffrin & Barroway, LLP
March 23 2006 - 7:00PM
PR Newswire (US)
RADNOR, Pa., March 23 /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 Northern District of Illinois
on behalf of all securities purchasers of Northfield Laboratories
Inc. (NASDAQ:NFLD) ("Northfield") or the "Company" between February
20, 2004 and February 21, 2006 inclusive (the "Class Period"). If
you wish to discuss this action or have any questions concerning
this notice, your rights, or interests with respect to these
matters, please contact Schiffrin & Barroway, LLP (Darren J.
Check, Esq. or Richard A. Maniskas, Esq.) toll-free at
1-888-299-7706 or 1-610-667-7706, or via e-mail at . The Complaint
charges Northfield, and Steven A. Gould with violations of the
Securities Exchange Act of 1934. 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. More specifically, the Complaint alleges: (1)
that PolyHeme, the Company's sole product, posed serious risks to
users of the product; (2) specifically, the Company failed to
disclose that at trial PolyHeme was linked to heart attacks, heart
rhythm aberrations, pneumonia and death; (3) that these problems
were statistically significant, meaning that there was minimal
likelihood that they occurred by chance; and (4) that defendants
concealed these facts in order to preserve PolyHeme's ability to
continue testing so that the product could be approved by the FDA
enabling Northfield to capture and control the lucrative blood
substitute market. On February 22, 2006, a story in The Wall Street
Journal revealed that ten of 81 patients who received the fake
blood suffered a heart attack within seven days, and two of those
died. None of the 71 patients in the trial who received real blood
were found to have had a heart attack. The markets reaction to the
disclosure was swift. On February 22, 2006, shares of Northfield
fell to $11.64 per share, down from $12.23 per share. By February
24, 2006, shares of Northfield declined to $10.54 per share. On
March 10, 2006, The Wall Street Journal revealed that the federal
Office for Human Research Protections has expressed "urgent ethical
concerns" to the Food and Drug Administration about the conduct of
Northfield's study. In reaction to this development, shares of
Northfield fell $1.15 per share, or 10.31 percent, to close, on
March 10, 2006, at $10.00 per share. Then, on March 16, 2006,
Northfield announced that it had received an informal request to
voluntarily provide certain information to the staff of the SEC's
Midwest Regional Office relating to the clinical development of its
PolyHeme product for elective surgery. On this news, Northfield's
stock declined another $0.33 per share to close at $9.65 per share.
Finally, on March 20, 2006, The Wall Street Journal revealed that
three medical ethics professors, in an open letter to research
boards at hospitals where a blood substitute is being studied
without patients' consent, said the research "fails to meet ethical
and regulatory standards." In reaction to this latest development,
Northfield's stock shed another $0.37 per share, to close, on March
20, 2006, at $9.57 per share. 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 billions of dollars on behalf of institutional and
individual investors from the United States and around the world.
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 May 19, 2006, 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 Darren J. Check, Esquire
Richard A. Maniskas, Esquire 280 King of Prussia Road Radnor, PA
19087 1-800-299-7706 (toll-free) or 1-610-667-7706 Or by e-mail at
DATASOURCE: Schiffrin & Barroway, LLP CONTACT: Darren J. Check,
Esquire, or Richard A. Maniskas, Esquire, both of Schiffrin &
Barroway, LLP, +1-800-299-7706, or +1-610-667-7706, e-mail: Web
site: http://www.sbclasslaw.com/
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