NEW YORK, April 3 /PRNewswire/ -- Zwerling, Schachter & Zwerling, LLP ("Zwerling Schachter") has filed a class action lawsuit in the United States District Court for the Northern District of Illinois on behalf of all persons and entities who purchased or otherwise acquired the common stock of Northfield Laboratories, Inc. ("Northfield" or the "Company") during the period from February 20, 2004 through February 21, 2006 (the "Class Period").
If you wish to discuss this matter, or have any questions concerning your rights and interests with respect to this securities class action litigation, please contact Shaye J. Fuchs, Esq. at 1-800-721-3900 or by e-mail at
The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by issuing materially false and misleading statements during the Class Period which caused Northfield common stock to trade at artificially inflated prices. These statements were allegedly materially false and misleading when made because defendants failed to disclose or indicate that: (a) the Company's clinical trial was abruptly ended due to serious adverse advents involving heart attacks and deaths of patients receiving PolyHeme in the study; (b) the Company's potential earnings from PolyHeme had been overstated because of the lack of full disclosure as to the Company's clinical trial's adverse results; (c) defendants had issued false and misleading statements to investors as to the progress of, marketability and ultimate success of PolyHeme; (d) the adverse results of the Company's clinical trial for PolyHeme would subject Northfield to increased regulatory scrutiny and greater risk that the FDA might not approve PolyHeme for marketing; (e) the structure of the Company's PolyHeme drug trials whereby PolyHeme may be tested on certain trauma patients without consent would expose Northfield to ethical concerns by medical-ethicists and regulators, and (f) that as a result, Northfield's future guidance was materially misstated during the Class Period.
On February 22, 2006, a story in The Wall Street Journal reported that the data available to defendants from the clinical trial but not to the public, revealed that ten patients who received PolyHeme suffered a heart attack within seven days, and two of those died. The data further showed defendants that none of the patients in the clinical trial who received real blood were found to have suffered a heart attack. In the aftermath of receiving this data, defendants shut down the clinical study and kept this adverse data hidden from investors. On February 22, 2006, Northfield's common stock fell to $11.64 a share on over 4.1 million shares traded.
If you purchased shares of Northfield's common stock during the period of February 20, 2004 through February 21, 2006, you may apply to serve as lead plaintiff. The deadline to move the Court seeking to be appointed lead plaintiff is May 19, 2006. The lead plaintiff is responsible for overseeing the prosecution of the action and ensuring that the interests of the class are protected. You may apply to be appointed lead plaintiff through Zwerling Schachter.
Zwerling Schachter concentrates in prosecuting class actions nationwide on behalf of investors. The firm currently plays a leading role in numerous major securities, antitrust and complex commercial litigations pending in federal and state courts and has offices in New York City, Garden City, New York, Boca Raton, Florida and Seattle, Washington. The firm has been recognized by courts throughout the country as highly experienced and skilled in complex litigation, particularly with respect to federal securities class action litigation.
Visit our website at: http://www.zsz.com/.
