Here is the news release for anyone who missed it:
Friday February 27, 9:07 am Eastern Time
Company Press Release
Spector & Roseman, P.C. Announces Class Action Law Suit Filed Against Vivus Inc. and its Chairman of the Board/Chief Executive Officer Alleging Fraud
PHILADELPHIA--(BUSINESS WIRE)--Feb. 27, 1998--A securities class action law suit has been commenced in the California Superior Court for the San Mateo County on behalf of those who purchased Vivus Inc. (Nasdaq:VVUS - news; NASDAQ: VVUS, ''Vivus'') common stock during the period from May 15, 1997 through Dec. 9, 1997 (the ''Class Period'').
The complaint alleges that during the Class Period, Vivus and its senior executives violated the California Corporations Code, the California Business and Professions Code, and the California Civil Code by issuing materially false and misleading statements regarding Vivus' business, products, financial conditions and future prospects in an attempt to artificially inflate Vivus' stock.
Among other things, the complaint charges defendants with concealing the material facts that demand for its only product, Medicated urethral System for Erection, alprostadil (''MUSE'') had diminished, the effectiveness of MUSE was being questioned, prescription rates had leveled off, and that reported sales through ''alternative channels'' were inaccurate and misleading.
Moreover, the company's prospects were bleak as the efficacy of the product was doubtful at best and competitive products were on the horizon which were more desirable to patients than was the company's MUSE.
Throughout the summer and fall of 1997, defendants continued to misrepresent the company's results of operations and future prospects by falsely representing that MUSE was a safer and more effective therapy for the majority of men afflicted with erectile dysfunction.
Vivus raised the company's 1997 and 1998 earnings forecasts to $0.94-$1.08 per share and $1.65-$1.72 per share, respectfully, without any reasonable basis.
However, as Vivus continued to reassure its investors and analysts that everything was well, the company unexpectedly announced on Dec. 10, 1997 that it would miss fourth quarter goals by as much as 25%, while attributing this shortfall to problems associated with moving to a new 90,000 square foot facility.
The complaint alleges that the defendants' false statements artificially inflated the price of Vivus stock which enabled the named individual defendants to sell over 210,000 shares of Vivus stock at inflated prices for over $6.1 million during the Class Period.
Following the company's disclosures on Dec. 10, 1997, the price of Vivus stock plummeted more than 34% to as low as $12 a share. Compared to Class Period high of $41-7/8 a share in October 1997, Vivus' stock value dropped more than 65%.
The plaintiff seeks to recover damages on behalf of all purchasers of Vivus stock during the Class Period (the ''Class''). Plaintiff is represented by the law firm Spector & Roseman, P.C., who have expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Spector & Roseman, P.C., located in Philadelphia and San Diego, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States.
The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws.
As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
If you are a member of the Class described above, you may, no later than 60 days from today to 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 or interests, please contact plaintiff's counsel:
-- Robert M. Roseman, collect, at 215/864-2400 -- Ellen Gusikoff Stewart, collect, at 619/338-4514 -- Spector & Roseman, P.C.
2000 Market St., 12th Floor, Philadelphia, PA 19103 or 600 West Broadway, 1800 One America Plaza, San Diego, CA 92101-5050
E-mail address: spro@voicenet.com -- Visit the firm's web-site at: spectorandroseman.com
SOURCE: Spector & Roseman
Contact:
Spector & Roseman, P.C.
Robert M. Roseman, collect, 215/864-2400
Ellen Gusikoff Stewart, collect, at 619/338-4514
E-mail address: spro@voicenet.com
web-site: spectorandroseman.com |
