Class Action Lawsuit Commenced Against Gliatech Inc. and Senior Executives

Strategic Insights -

A class action lawsuit has been commenced against Gliatech, Inc. and its senior executives in the United States District Court for the Northern District of Ohio, seeking to recover damages on behalf of defrauded investors who purchased Gliatech securities between April 9, 1998 and August 29, 2000. The complaint alleges that defendants issued a series of materially false and misleading statements, concealing material adverse information, which artificially inflated the price of Gliatech's common stock during the class period. The lawsuit charges violations of the antifraud provisions of the Securities Exchange Act of 1934 and Rule 10b-5. Weiss & Yourman, a law firm experienced in prosecuting class actions, has been appointed to represent the plaintiff.

Key Takeaways:

  • A class action lawsuit has been commenced against Gliatech, Inc. and its senior executives in the United States District Court for the Northern District of Ohio.
  • The lawsuit seeks to recover damages on behalf of defrauded investors who purchased Gliatech securities between April 9, 1998 and August 29, 2000.
  • The complaint alleges that defendants made materially false and misleading statements, concealing material adverse information, which artificially inflated the price of Gliatech's common stock.
  • The lawsuit charges violations of the antifraud provisions of the Securities Exchange Act of 1934 and Rule 10b-5.
  • Weiss & Yourman, a law firm with significant experience in prosecuting class actions, has been appointed to represent the plaintiff.
  • Investors who purchased Gliatech securities during the class period may be affected and may move the court to serve as a lead plaintiff by November 6, 2000.
  • Weiss & Yourman is litigating the action on a contingent basis, stating that investors do not need to seek appointment as a lead plaintiff to share in any recovery.

Statistics:

  • The class period spans from April 9, 1998 to August 29, 2000.
  • The lawsuit charges defendants with violating the antifraud provisions of the Securities Exchange Act of 1934 and Rule 10b-5.
  • Weiss & Yourman has been appointed as lead counsel in numerous class action lawsuits and has recovered hundreds of millions of dollars on behalf of investors.

Sources:

  • Business Editors NEW YORK--(BUSINESS WIRE)--October 5, 2000
  • Weiss & Yourman, a law firm
  • The Securities Exchange Act of 1934
  • Rule 10b-5