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News Alert from PR Newswire via Quote.com
Topic: (NASDAQ:ZONA) Zonagen Inc,
Quote.com News Item #5862767
Headline: Class Action Commenced by Kaufman Malchman Kirby & Squire, LLP. And
Kilgore & Kilgore
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NEW YORK, March 23 /PRNewswire/ -- YOU ARE HEREBY NOTIFIED pursuant to
Section 21D(A)(3)(a)(i) of the Securities Exchange Act of 1934, that on
March 12, 1998, Kaufman Malchman Kirby & Squire, LLP. and Kilgore & Kilgore
filed a class action lawsuit against Zonagen, Inc. ("Zonagen") (NASDAQ:ZONA)
and certain of its officers and directors. The lawsuit was filed in the
United States District Court for the Southern District of Texas on behalf of
all purchasers of Zonagen common stock between April 1, 1996 through
November 18, 1997, inclusive (the "Class Period").
The Complaint asserts that defendants violated Section 10(b) and 20(a) of
the Securities Exchange Act of 1934. Plaintiff seeks to recover losses
suffered by investors who purchased Zonagen securities. The lawsuit alleges
that during the Class Period, defendants made repeated materially false
statements about the Company's experimental drug for impotency, VASOMAX-TM,
and its new adjuvant, IMMUMAX. As the result of the defendants'
misstatements, Zonagen's stock price sky-rocketed from $9-3/8 on April 1, 1996
to a Class Period high of $44-1/8 on October 13, 1997. Defendants, however,
knew all along that VASOMAX-TM was merely an oral formulation of a generic
drug called Phentolomine that had been long known to be ineffective for the
treatment of impotence, and that the Company's patent did not cover the
delivery method of the drug. Furthermore, defendants knew its product IMMUMAX
was merely a previously-patented drug Christosan, the rights to which are
owned by two other companies.
Defendants perpetrated this hoax in order to successfully complete a
public offering of 225 million shares of the Company's common stock, to
complete two private offerings of Zonagen stock, and to engage in insider
trading at artificially high share prices.
Plaintiff seeks to recover damages on behalf of class members who
purchased Zonagen common stock during the Class Period, excluding the
defendants and their affiliates, and is represented by Kaufman Malchman Kirby
& Squire, LLP., and Kilgore & Kilgore. Both Kaufman Malchman and Kilgore &
Kilgore specialize in complex litigation, including securities and consumer
class actions for decades. Kaufman Malchman and Kilgore & Kilgore have
repeatedly demonstrated their expertise in this field, and have been
repeatedly recognized by various courts which have appointed the firms to
major positions in consolidated and multi-district litigation. Their efforts
on behalf of shareholders in securities litigation have resulted in recoveries
totaling hundreds of millions of dollars. Both firms' achievements and
quality of service have been chronicled in published decisions, and the firms'
efforts have been responsible for significant recoveries, or injunctive
relief, for its clients and class members.
If you are a member of the Class described above, you may, not later than
May 8, 1998, move the Court to serve as lead plaintiff of the class, if you so
choose. In order to serve as lead plaintiff, however, you must meet certain
legal requirements. If you wish to discuss this action, or have any questions
concerning this notice or your rights, please contact:
Jeffrey H. Squire, Esq.
Ira M. Press, Esq.
KAUFMAN MALCHMAN KIRBY & SQUIRE, LLP.
919 Third Avenue, 11th Floor
New York, New York 10022
(212) 371-6600 or Toll Free (888) 529-4787
kmkslaw@aol.com (E-mail address)
and
Robert Hill, Esq.
Roger Claxton, Esq.
KILGORE & KILGORE
3131 McKinney Avenue - LB 103
Suite 700
Dallas, Texas 75204
(214) 969-9099
kilgore2@airmail.net (E-mail address)
SOURCE Kaufman Malchman Kirby & Squire, LLP, and Kilgore & Kilgore
-0- 03/23/98
/CONTACT: Jeffrey H. Squire, Esq., or Ira M. Press, Esq., of Kaufman
Malchman Kirby & Squire, LLP, 212-371-6600 or 888-529-4787; or Robert Hill,
Esq., or Roger Claxton, Esq., of Kilgore & Kilgore, 214-969-9099/ |
