MEDIA, Pa., Dec. 8 Shepherd, Finkelman, Miller & Shah, LLP (http://www.sfmslaw.com; e-mail: [email protected]), a law firm with offices in California, Connecticut, Florida, New Jersey, Pennsylvania and Wisconsin, has filed a lawsuit seeking class action status in the United States District Court for the Eastern District of Pennsylvania against Hemispherx Biopharma, Inc. ("Hemispherx" or the "Company") (Amex: HEB) and the Company's CEO, William A. Carter, M.D., on behalf of all purchasers of Hemispherx securities between February 18, 2009 and November 2, 2009, inclusive (the "Class Period"). A copy of the Complaint filed in this action can be obtained from the Court, or you can call our offices toll free at either 866/540-5505 or 877/891-9880 to speak with an attorney regarding this matter and we will send you a copy of the Complaint.
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The Complaint alleges that the Company violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the Complaint alleges that, throughout the Class Period, the Company issued a series of materially false and misleading statements to the market concerning the status of its application for approval by the U.S. Food and Drug Administration ("FDA") of Ampligen, its experimental drug for the treatment of Chronic Fatigue Syndrome. While the market understood that the Company's application was complete and that any delays in FDA action were due to constraints on the FDA's resources, the Company took advantage of the inflated stock price to, among other things, raise millions of dollars in two public stock offerings.
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On November 2, 2009, the Company announced that it still needed to submit additional information to the FDA, and revealed that it had already submitted six previously undisclosed reports to the FDA. As noted by market observers, this news stood in stark contrast to Class Period statements regarding the supposed status of Hemispherx's New Drug Application ("NDA"). As a result of this revelation, shares of Hemispherx's common stock closed at $1.33 per share on November 2, 2009, down $0.12 per share, and fell even more precipitously the next day, closing at $1.13 per share, well below the Class Period high of $3.75 per share reached on June 4, 2009. On December 1, 2009, Hemispherx announced that its NDA had been rejected by the FDA.
If you purchased Hemispherx securities between February 18, 2009 and November 2, 2009 (inclusive), you may qualify to serve as lead plaintiff on behalf of the Class. All motions for appointment as a lead plaintiff must be filed with the Court by no later than January 11, 2010. Any member of the proposed Class may move the Court to serve as lead plaintiff in this action through counsel of their choice, or may remain an absent Class member. There are certain legal requirements to serve as lead plaintiff, which we would be pleased to discuss with you. Please contact James E. Miller, Esquire (866/540-5505; [email protected]) or James C. Shah, Esquire (877/891-9880; [email protected]), if you would like to discuss this action or have any question regarding this notice or your rights.
Shepherd, Finkelman, Miller & Shah, LLP (http://www.sfmslaw.com) is a law firm that represents investors, including institutions and individuals, as well as consumers, in class action and other complex litigation, and maintains offices in California, Connecticut, Florida, New Jersey, Pennsylvania and Wisconsin. The firm's attorneys have appeared in matters on behalf of our clients throughout the United States and have been appointed lead counsel in a number of class actions and corporate governance matters.
SOURCE Shepherd, Finkelman, Miller & Shah, LLP
