INVESTOR NOTICE: MURRAY, FRANK & SAILER LLP ANNOUNCES A SHAREHOLDER CLASS ACTION HAS BEEN FILED AGAINST PHARMOS COROPORATION - PARS
New York, NY (PrimeZone) February 18, 2005 - Murray, Frank & Sailer LLP announces that a class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of purchasers of the securities of Pharmos Corporation (“Pharmos” or the “Company”) (NASDAQ: PARS) between August 23, 2004 and December 20, 2004, inclusive (the “Class Period”).
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The complaint charges Pharmos, Haim Aviv and Gad Riesenfeld with violations of the Securities Exchange Act of 1934. More specifically, 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: (1) that defendants knew or recklessly disregarded the fact that dexanabinol was ineffective in treating severe traumatic brain injury ("TBI"); (2) that the defendants maintained the appearance that dexanabinol was effective for the sole purpose of allowing the Company's executives to sell their own shares at artificially inflated prices; and (3) that the Company's statements regarding the effectiveness of the drug were lacking in any reasonable basis when made.
On December 20, 2004, Pharmos announced top-line results of its pivotal Phase III trial of dexanabinol to treat severe TBI. The Company drug, dexanabinol did not demonstrate efficacy as measured by the primary clinical outcome endpoint, the Extended Glasgow Outcome Scale. News of this shocked the market. Shares of Pharmos fell $2.32 per share, or 66.29 percent, on December 20, 2004 to close at $1.18 per share, on unusually high volume.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Pharmos securities between August 23, 2004 and December 20, 2004, and sustained damages, you may, no later than March 25, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
Murray, Frank & Sailer LLP
Eric J. Belfi
Fax: (212) 682-1892
Email: [email protected]