Spector, Roseman & Kodroff, P.C. Announces Class Action Lawsuit Against Northfield Laboratories, Inc.
April 13 2006 - 10:40AM
Business Wire
The law firm of Spector, Roseman & Kodroff, P.C. announces that
a securities class action lawsuit was commenced in the United
States District Court for the Northern District of Illinois, on
behalf of purchasers of the common stock of Northfield
Laboratories, Inc. ("Northfield" or the "Company") (NASDAQ:NFLD)
between February 20, 2004 through February 21, 2006, inclusive (the
"Class Period"). The Complaint alleges that Northfield and its
chairman and chief executive officer, Steven A. Gould, violated the
federal securities laws when the Company issued a series of
materially false and misleading statements concerning the safety
and history of the Company's sole product, a blood substitute
called PolyHeme. Specifically, the complaint against Northfield
alleges that the Company failed to disclose that a significant
portion of patients taking PolyHeme in a clinical study suffered
heart attacks within seven days of taking PolyHeme - as compared to
zero heart attacks from patients receiving real blood in the same
study. As a result of these statement, the stock price of
Northfield was artificially inflated causing investors to suffer
damages. On February 22, 2006, The Wall Street Journal reported
that Northfield had "quietly shut down" and "didn't publicly
disclose the results" of a study of PolyHeme in which 10 of 81
patients who received the blood substitute suffered heart attacks
within 7 days, two of whom later died. According to The Wall Street
Journal, none of the 71 patients who received real blood in the
trial were found to have had a heart attack. Citing internal
Company documents, The Wall Street Journal reported that Northfield
had begun the trial, known as Acute Normovolemic Hemodilution
("ANH" or "aneurysm study") in the late 1990s. That same day, the
Company issued a press release responding to The Wall Street
Journal article admitting that it had not published the full data
upon closing the study. Shares of Northfield fell from $12.23 to
close at $11.30 the following day. The shares declined even further
in the ensuing weeks, closing on March 14, 2006 at $9.57. If you
purchased Northfield securities during the Class Period, you may,
no later than May 16, 2006, move to be appointed as a Lead
Plaintiff in this class action. A Lead Plaintiff is a
representative, chosen by the Court, that acts on behalf of other
class members in directing the litigation. The Private Securities
Litigation Reform Act of 1995 directs Courts to assume that the
class member(s) with the "largest financial interest" in the
outcome of the case will best serve the class in this capacity.
Courts have discretion in determining which class member(s) have
the "largest financial interest," and have appointed Lead
Plaintiffs with substantial losses in both absolute terms and as a
percentage of their net worth. If you have sustained substantial
losses in Northfield securities during the Class Period, please
contact Spector, Roseman & Kodroff, P.C. at
classaction@srk-law.com for a more thorough explanation of the Lead
Plaintiff selection process. If you have relatively small losses,
your ability to participate in any recovery will be protected by
the Lead Plaintiff(s), and you need take no affirmative steps at
this time. If you wish to join this action or have any questions
concerning this notice or your rights or interests, please contact
plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or
via E-mail at classaction@srk-law.com. For more detailed
information about the firm please visit its website at
http://www.srk-law.com. Spector, Roseman & Kodroff, P.C.,
located in Philadelphia, Pennsylvania, concentrates its practice in
complex litigation including actions dealing with securities laws,
antitrust, contract and commercial claims. The firm is active in
major litigation pending in federal and state courts throughout the
United States. The firm's reputation for excellence has been
recognized on repeated occasions by courts which have appointed the
firm as lead counsel in numerous major class actions involving
violations of the federal securities laws and the federal antitrust
laws, and consumer fraud. As a result of the efforts of the firm,
and its members, hundreds of millions of dollars have been
recovered through judgments and settlements on behalf of thousands
of defrauded shareholders and companies.
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