Wechsler Harwood Halebian & Feffer LLP Files Class Action Against Cell Pathways, Inc. (Nasdaq: CLPA)

NEW YORK, April 23 /PRNewswire Interactive News Release/ -- Wechsler Harwood Halebian & Feffer LLP filed a securities class action lawsuit (the "Complaint") in the United States District Court for the Eastern District of Pennsylvania on behalf of all investors who bought the securities of Cell Pathways, Inc. (NASDAQ: CLPA), ("CPI" or the "Company") in the period from October 27, 1999 through September 22, 2000, inclusive (the "Class Period").

The complaint charges that CPI, along with certain of its officers and directors ("Defendants"), violated the Securities Exchange Act of 1934. The Complaint alleges that during the Class Period, Defendants misrepresented the safety and efficacy of CPI's principal drug, Apotsyn, as a treatment for familial adenomatous polyposis ("FAP"). Specifically, the complaint alleges that defendants made a series of public representations concerning clinical trial of Apotsyn -- including (i) that Apotsyn reduced polyp formation across the entire colorectum of FAP patients; (ii) that treatment with Apotsyn causes regression of polyps; and (iii) that Apotsyn was a chemopreventive for FAP patients -- that were misleading and/or unsupported by CPI's clinical testing data. The complaint further alleges that defendants misrepresented the comparative toxicity of Apotsyn and competing drugs, and that defendants representation that Apotsyn was an alternative to surgery for FAP patients was misleading.

On September 22, 2000, CPI announced that the U.S. Food and Drug Administration ("FDA") refused to approve Apotsyn as a treatment for FAP. Such refusal occurs when the clinical trial evidence of the efficacy and safety of a drug is inadequate. In reaction to this shocking news, the price of CPI stock dived by nearly 70%.

On March 28, 2001 the Company filed its 2000 Annual Report on Form 10-K (the "2000 Form 10-K" with the SEC, which stated that "[t]he FDA raised safety concerns relating to the intended use [of Apotsyn] in FAP." The 2000 Form 10-K further disclosed that patients who were treated with Apotsyn experienced elevated liver enzymes, leasing to treatment interruption, as well as episodes of severe abdominal pain." These adverse effects were not produced by treatment with the competing drug. In addition, the 2000 Form 10-K revealed that there was no evidence that Apotsyn actually reduced cancer in FAP patients. Recently, CPI has stated that it was evaluating whether the regulatory and competitive environment warranted continuation of the FAP program.

Plaintiff seeks to recover damages on behalf of all investors who purchased CPI common stock during the Class Period and who suffered damages as a result, and is represented by Wechsler Harwood Halebian & Feffer LLP, which has extensive experience representing investors in class actions. The reputation and expertise of the firm in investor and other class action litigation has been repeatedly recognized by the courts, which have appointed the firm to major positions in complex class action litigations. For more information about Wechsler Harwood Halebian & Feffer LLP, please visit the Firm's website at http://www.whhf.com/.

If you are a member of the Class described above, and if you meet certain other legal requirements, you may, no later than May 15, 2001, move the Court to serve as a lead plaintiff. 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." The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4). Please note, however, that class members need not seek appointment as lead plaintiff in order to share in any recovery resulting from this litigation.

If you would like to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact the following:

  Wechsler Harwood Halebian & Feffer LLP
  488 Madison Avenue, New York, New York 10022
  Telephone: 877-935-7400 (toll free)
  Ramon Pinon IV, rpinonIV@whhf.com

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SOURCE: Wechsler Harwood Halebian & Feffer LLP

Contact: Ramon Pinon IV of Wechsler Harwood Halebian & Feffer LLP,
877-935-7400, rpinonIV@whhf.com

Website: http://www.whhf.com/