Wechsler Harwood Commences Class Action Suit Against XOMA, Ltd. On Behalf of Shareholders of (XOMA)
PRNewswire
NEW YORK
Nov 30, 2001
Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") has filed a class action lawsuit in the Northern District of California on behalf of purchasers of Xoma Ltd. (NASDAQ: XOMA) ("XOMA" or the "Company") during the period between May 24, 2001 and October 4, 2001 (the "Class Period"), including those persons who purchased shares in or traceable to XOMA's June 26, 2001 offering of 3 million shares (the "Offering"). Wechsler Harwood will commence an action against Xoma, Genentech Inc. ("Genentech") (together, the "Companies"), and certain officers and directors of the two Companies.
The complaint will allege that defendants violated Sections 10(b) and 20 of the Securities Exchange Act of 1934 (the "Exchange Act"), and Rule 10b-5, promulgated thereunder, and Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 (the "Securities Act"), by issuing a Registration Statement and Prospectus, as well as press releases and filings with the Securities and Exchange Commission (the "SEC") during the Class Period, that contained materially false and misleading statements. As a result of these false and misleading statements, the market price of the Company's securities were artificially inflated.
Specifically, the complaint will allege that defendants caused the two Companies, as co-developers of the psoriasis drug Xanelim, to repeatedly tell investors that XOMA intended to file its Biologics Licensing Application ("BLA") with the Food and Drug Administration (the "FDA") by the end of 2001 or first quarter of 2002. The timing of the BLA filing was material to investors because the prompt filing would allow Xanelim to reach the market faster than its competitors and thereby gain greater market share. Defendants failed to disclose that during pivotal Phase III testing of Xanelim, the Companies had relocated manufacturing facilities from XOMA to Genentech. The Companies also changed the manufacturing process for the drug in preparation for commercial production.
While representing that the Company intended to file its BLA by year-end 2001 or first quarter 2002, defendants further failed to disclose that the FDA would require pharmacokinetic testing to be done because XOMA and Genentech were unable to demonstrate equivalency between the Xanelim used for clinical trials and the compound manufactured for commercial production. On June 26, 2001, XOMA sold 3 million shares of stock at an offering price of $15 per share, raising $45 million.
On October 4, 2001, after the market closed, the Companies issued a press release disclosing for the first time that the FDA was requiring them to do a further pharmacokinetic study to show such equivalency and that, as a result, the Company would not file its BLA until the summer of 2002 at the earliest.
On October 5, 2001, the price of XOMA stock fell as low as $6.40 from its closing price of $9.76 per share a day earlier.
Plaintiff seeks to recover damages on behalf of class members.
If you are a member of the Class described above, and if you meet certain other legal requirements, you may, no later than January 14, 2002, 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.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (http://www.whhf.com/) has more information about the firm.
If you wish to discuss this action with Wechsler Harwood Halebian & Feffer LLP, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood Halebian & Feffer LLP 488 Madison Avenue 8th Floor New York, New York 10022 Phone: 877-935-7400 (Toll Free) Ramon Pinon IV, Wechsler Harwood Shareholder Relations Department: pguiteau@whhf.com.
SOURCE: Wechsler Harwood Halebian & Feffer LLP
Contact: Wechsler Harwood Halebian & Feffer LLP, +1-877-935-7400, or
Ramon Pinon IV, Wechsler Harwood Shareholder Relations Department,
pguiteau@whhf.com
Website: http://www.whhf.com/