Info about the class action lawsuit.
I spent about 45 minutes on the phone yesterday with Jack Zwick, an attorney with Weiss & Yourman in NYC ( 212-532-4171). He has filed suit on behalf of a number of investors and is attempting to have the suit certified as a class action. Weiss & Yourman are working on this with Stull, Stull & Brody. They are looking to be certified as co-lead counsel if the suit is certified as a class action. Both of these firms are very big into the prctice of these kinds of lawsuits. A description of how they operate (from the defendant's point of view) can be found at: legalreform.org
The class they seek to certify would include all those who bought between April 25, 1995 and February 26, 1996, and did not sell prior to the 2/26 FDA meeting. If you sold on the 26th, but after the meeting began, and took a loss, you might still be included in the class. Apparently, as the meeting went down hill, people were running out of the room, calling their brokers, and dumping shares.
The motions for class certification have been filed and arguments presented. They are waiting for a ruling from the judge. They have no idea when that could come, or predictions as to which way it will go.
If the class is certified, then the circus will begin. What I've read about suits like this is that it could easily be 2-3 years before any outcome is reached. And then, if they win or if the suit is settled, a payoff of 50 cents on the dollar is probably the best we could hope for (remember, the lawyers get paid first in these suits, then the members of the class split what's left). Even if they win the suit, there may not be anything left to recover.
Jack is mailing me a copy of the complaint. After I read it, I'll share any thoughts I have. |
