MURRAY, FRANK & SAILER LLP ANNOUNCES THE FILING OF A SHAREHOLDER CLASS ACTION AGAINST NORTHFIELD LABORATORIES, INC NFLD
New York, NY April 7, 2006 - Murray, Frank & Sailer LLP announces that a class action lawsuit has been 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").
Join the Case
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.
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 Northfield securities on any world exchange between February 20, 2004 and February 21, 2006 and sustained damages, you may, no later than May 19, 2006, 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. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Eric J. Belfi or Bradley P. Dyer of Murray, Frank & Sailer LLP.
Murray, Frank & Sailer LLP
Eric J. Belfi
Bradley P. Dyer
Fax: (212) 682-1892
Email: [email protected]