Suit alleges Kos violated securities laws
Reuters Story - August 07, 1998 16:06
%DRU %US KOSP V%REUTER P%RTR
CHICAGO, Aug 7 (Reuters) - A lawsuit was filed against Kos
Pharmaceuticals Inc. and certain officers and directors of the
specialty drug company charging violation of securities laws,
attorneys for some shareholders said on Friday.
The suit, filed in U.S. District Court for the Northern
District of Illinois on August 5, charges the company and its
officers filed a false and misleading registration statement
with the Securities and Exchange Commission and issued a false
and misleading prospectus to the investing public.
In addition, the suit charges that the company and its
officers made material misstatements and omissions of fact in
quarterly and annual SEC filings and press releases.
The lawsuit was filed on behalf of Oxford Asset Management
Ltd. and all individuals who bought shares of Kos common stock
between July 29, 1997 and Nov. 13, 1997. Attorneys are seeking
class status for the suit, said Arthur Susman, one of the
attorneys for Oxford.
Specifically, the complaint alleges that defendants made
material misrepresentations and omissions to the investing
public regarding the safety, efficacy and sales volume for
Niaspan, which, at the time, was Kos' only product.
On November 12, 1997, Kos' share price tumbled 14-5/16 to
16-5/8 after the company reported a first quarter loss wider
than the same period a year earlier. At that time, Kos
attributed the loss to expenses associated with the
establishment of a sales force and the initiation of physician
awareness programs to support the recently approved Niaspan.
Niaspan is an extended-release niacin prescription product
used to manage cholesterol levels.
Kos, based in Miami, Florida, is a specialty pharmaceutical
company which develops prescription drugs to treat chronic
cardiovascular and respiratory diseases. A Kos spokesman said
the company expects to issue a statement later today.
Shares of Kos were trading off 9/16 to 8-5/16. |
