Shareholder Class Action Filed Against Isolagen, Inc. by the Law Firm of Schiffrin & Barroway, LLP
September 06 2005 - 7:30PM
PR Newswire (US)
RADNOR, Pa., Sept. 6 /PRNewswire/ -- The following statement was
issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the
United States District Court for the Southern District of Texas on
behalf of all securities purchasers of Isolagen, Inc. (AMEX:ILE)
("Isolagen" or the "Company") between March 3, 2004 and August 1,
2005, inclusive (the "Class Period"), including purchasers of
Isolagen stock issued in connection with or traceable to Isolagen's
June 9, 2004, common stock offering. 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
Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A.
Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or
via e-mail at . The complaint charges Isolagen, Frank M. Delape,
Robert J. Bitterman, Michael Macaluso, Jeffrey W. Tomz, Olga Marko,
William K. Boss, Jr. and Michael Avignon with violations of the
Securities Exchange Act of 1934. More specifically, the Complaint
alleges that the Company failed to disclose and misrepresented the
following material adverse facts which were known to defendants or
recklessly disregarded by them: (1) that U.K. demand for the
Isolagen Process had declined; (2) that $51.8 million in marketable
debt securities were improperly recorded as cash, thereby
overstating the Company's financial results; (3) that the clinical
trials of the Isolagen Process for dermal and dental applications
were not being conducted in a controlled environment and that the
efficacy of the process was insignificant; (4) that the Company's
science was not advanced and, as a result, the Company's products
would not become commercially available in the United States as
early as 2005, and the "ACE System" would not be introduced for new
patents in the United Kingdom facility in the fourth quarter of
2004; (5) that the transport medium Isolagen was using was not
commercially or scientifically viable; (6) that the marketing and
promotion processes employed by the Company in the U.K. to
determine demand for the Isolagen Process violated U.K. advertising
laws and regulations; (7) that as a result of increased expenses
and pricing pressures, Isolagen's gross profit margins were
declining; (8) that the Company lacked adequate internal controls;
and (9) that the Company's positive statements about its
operational and financial performance, cash position and future
guidance were lacking in a reasonable basis. On August 1, 2005, the
Company disclosed that its preliminary results from its phase III
clinical trial of the Isolagen Process had not met all four primary
end points and that neither of the two dermal studies had achieved
independent statistical significance. On this news, shares of
Isolagen fell $2.75 per share, or 49.19 percent, on August 1, 2005,
to close at $2.84 per share. Thereafter, on August 10, 2005,
Isolagen released the Company's 2Q 2005 financial results,
reporting a net loss per share. Following these revelations, the
Company's stock declined further to $2.50 per share, down from the
Class Period high of $12.04 per share. Plaintiff seeks to recover
damages on behalf of class members and is represented by the law
firm of Schiffrin & Barroway, which prosecutes class actions in
both state and federal courts throughout the country. Schiffrin
& Barroway is a driving force behind corporate governance
reform, and has recovered billions of dollars on behalf of
institutional and individual investors from the United States and
around the world. For more information about Schiffrin &
Barroway, or to sign up to participate in this action online,
please visit http://www.sbclasslaw.com/ . If you are a member of
the class described above, you may, not later than October 17, 2005
move the Court to serve as lead plaintiff of the class, if you so
choose. A lead plaintiff is a representative party that acts on
behalf of other class members in directing the litigation. In order
to be appointed lead plaintiff, the Court must determine that the
class member's claim is typical of the claims of other class
members, and that the class member will adequately represent the
class. Under certain circumstances, one or more class members may
together serve as "lead plaintiff." Your ability to share in any
recovery is not, however, affected by the decision whether or not
to serve as a lead plaintiff. You may retain Schiffrin &
Barroway, or other counsel of your choice, to serve as your counsel
in this action. CONTACT: Schiffrin & Barroway, LLP Darren J.
Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road
Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706 Or by
e-mail at DATASOURCE: Schiffrin & Barroway, LLP CONTACT: Darren
J. Check, Esq. or Richard A. Maniskas, Esq. of Schiffrin &
Barroway, +1-888-299-7706 (toll free) or +1-610-667-7706 or Web
site: http://www.sbclasslaw.com/
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