John: Is this a new suit? In case we didn't get the point:
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News Alert from BusinessWire via Quote.com
Topic: (NASDAQ:ZONA) Zonagen Inc,
Quote.com News Item #5878450
Headline: Class Action Filed Against Zonagen, Inc. and Others
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NEW YORK--(BUSINESS WIRE)--March 24, 1998--Notice is hereby
given that a class action lawsuit was filed on March 13, 1998 in the
United States District Court for the Southern District of Texas,
Houston Division, on behalf of all persons who purchased or otherwise
acquired the common stock of Zonagen, Inc. (NASDAQ:ZONA) ("Zonagen"
or the "Company"), between May 27, 1997 and January 15, 1998,
inclusive (the "Class Period").
The complaint charges Zonagen and certain officers and directors
of the Company during the relevant time period with violations of
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, by,
among other things, issuing to the investing public false and
misleading statements concerning the purported attributes of Vasomax,
Zonagen's experimental impotency drug, and the Company's efforts to
complete and file timely a New Drug Application ("NDA") with the
United States Federal Drug Administration seeking approval of Vasomax
for use in the treatment of male impotence. In particular, the
complaint alleges, that at all relevant times, Zonagen failed to
disclose the adverse and severe side effects experienced by
recipients of Vasomax during clinical trials, or that phentolamine,
the active ingredient in Vasomax, was a 45 year-old generic drug that
had been proven ineffective as an oral treatment of male impotency.
It is further alleged that Zonagen materially misrepresented, as
"positive," the results of Phase III clinical trials which were in
fact flawed and inconclusive and not supportive of an NDA filing.
Because of the issuance of a series of false and misleading
statements, the price of Zonagen common stock was artificially
inflated during the Class Period.
On January 15, 1998, a press release was issued by a market
analyst concerning Zonagen and Vasomax entitled "Zonagen's
Fast-Acting Claims Proven False and Fraudulent." The press release
revealed that review of Zonagen's patent application demonstrates
that Vasomax contains "nothing secret or new" and that Vasomax "is
by every measure much slower acting than standard phentolamine,"
citing prior scientific research.
In response, the price of Zonagen common stock fell 11%, from
$19.00 per share to $16.93 per share, a decline of 61% from a Class
Period high of $44.125 per share reached on October 13, 1997. As of
the present, Zonagen has still not filed an NDA for Vasomax.
Plaintiff seeks to recover damages on behalf of class members and
is represented by the law firm of Milberg Weiss Bershad Hynes &
Lerach LLP ("Milberg Weiss"), Emmons & Associates and Fruchter &
Twersky. Milberg Weiss maintains offices in New York City, San
Diego, Los Angeles and San Francisco and is active in major
litigations pending in federal and state courts throughout the United
States. Milberg Weiss has taken a leading role in numerous important
actions on behalf of defrauded investors, and is responsible for a
number of outstanding recoveries which, in the aggregate, total
approximately $2 billion. For more information about Milberg Weiss,
please visit our website at www.milberg.com. Emmons & Associates and
Fruchter & Twersky similarly have substantial experience in the
prosecution of complex litigation.
If you are a member of the class described above, you may, not
later than sixty days from March 9, 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 or interests with respect to
these matters, please contact Milberg Weiss (Steven G. Schulman or
Samuel H. Rudman) at One Pennsylvania Plaza, 49th Floor, New York,
New York 10119-0165.
CONTACT: Milberg Weiss Bershad Hynes & Lerach LLP
Steven G. Schulman
Samuel H. Rudman
1-800-922-0187
E-Mail: classact@microweb.com
KEYWORD: NEW YORK TEXAS
INDUSTRY KEYWORD: MEDICINE PHARMACEUTICAL
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