Class Action Lawsuit Filed Against Cell Pathways, Inc. Over Misleading Statements

A class action lawsuit was filed in the United States District Court Eastern District of Pennsylvania against Cell Pathways, Inc. (CPI) on behalf of all purchasers of CPI common stock during a specific period between November 3, 1998, and February 2, 1999. The lawsuit alleges that CPI and certain officers and directors issued false and misleading statements about the discovery of a new means of treating cancerous and precancerous lesions using their new drug, PREVATAC. The complaint also charges that the defendants violated Sections 10(b), 20(a) of the Securities Exchange Act of 1934 and Section 11 of the Securities Act of 1933.

Key Takeaways:

• The lawsuit was filed by the law firm of Spector & Roseman, P.C. on February 23, 1999.
• The class action lawsuit claims that CPI's statements about PREVATAC's efficacy and projected growth were misleading and artificially inflated the stock price.
• The lawsuit alleges that the defendants' false statements caused investors to lose millions of dollars when the price of CPI stock collapsed from $29.125 to $6.00 per share after the company released unfavorable results on February 1, 1999.
• The law firm of Spector & Roseman, P.C. has a reputation for excellence in complex litigation, including securities laws, antitrust, and contract claims.
• The firm has recovered hundreds of millions of dollars for defrauded shareholders and companies in previous cases.
• The firm is currently representing investors in actions against S3, Inc., Altris Software, Dreyfus Aggressive Growth Fund, Mitcham Corp., Vivus, Inc., and Zapata Corp.
• The firm is also representing businesses in antitrust actions, including In re Flat Glass Antitrust Litigation and In re Corrugated Paper Antitrust Litigation.
• Class members must move the Court to serve as lead plaintiff within sixty days from February 12, 1999, to be eligible for lead plaintiff status.
• Investors can contact plaintiffs' counsel Robert M. Roseman or Joshua H. Grabar for more information about the lawsuit.

Statistics:

• The lawsuit was filed on February 23, 1999.
• The class period is from November 3, 1998, to February 2, 1999.
• The stock price of CPI collapsed from $29.125 to $6.00 per share after the company released unfavorable results on February 1, 1999.
• The firm of Spector & Roseman, P.C. has recovered hundreds of millions of dollars for defrauded shareholders and companies in previous cases.

Sources:

• Spector & Roseman, P.C. press release dated February 23, 1999.