Court Awards Kos Pharmaceuticals Over $500,000 In Fees And Costs Following Dismissed Shareholder Suit
MIAMI, May 30 /PRNewswire/ -- Kos Pharmaceuticals, Inc. (Nasdaq: KOSP - news) announced today that the United States District Court for the Southern District of Florida has granted to the Company and its underwriters full recovery of their fees and costs, totaling nearly $503,000, from a group of shareholders who unsuccessfully sued Kos and its underwriters in 1998.
A class action complaint, filed in August 1998, alleged that the Company had violated federal securities laws in its October 1997 underwritten securities offering. Kos, represented by Holland & Knight LLP, filed a motion to dismiss in January 1999, and the complaint was dismissed by the United States District Court for the Southern District of Florida in May 1999. In his opinion, Judge Donald M. Middlebrooks stated that the plaintiffs' claims were inadequate and unsupported. The court denied all other pending motions and declared the case closed. The plaintiffs subsequently filed an appeal, which is currently pending.
Kos and the other defendants filed a motion with the same court in July 1999 to recover attorneys' fees and expenses in the amount of $502,577. The ruling was handed down by Judge Middlebrooks on May 22, 2000.
``By awarding Kos the full relief it sought, the court reinforced its previous judgment,'' said Tracy Nichols of Holland & Knight. ``An award for the total amount sought is unusual, and is significant in that it reflects the lack of merit in the plaintiffs' case.''
``We are pleased with Judge Middlebrooks' decisions regarding the plaintiffs' groundless legal action, and we consider the Company thoroughly vindicated -- financially as well as legally -- with this ruling,'' said Daniel M. Bell, President and Chief Executive Officer of Kos.
Kos Pharmaceuticals, Inc. is a fully integrated specialty pharmaceutical company engaged in developing and commercializing proprietary prescription pharmaceutical products, primarily for the treatment of chronic cardiovascular and respiratory diseases. Kos has drug-delivery capabilities in both solid- dose and aerosolized formulation technologies.
SOURCE: Kos Pharmaceuticals, Inc.
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