| Company: | Connetics Corporation |
| Ticker Symbol: | NASD: CNCT |
| Class Period: | June 28, 2004 to May 3, 2006 |
| Date Filed: | Sep-18-06 |
| Lead Plaintiff Deadline: | Nov-18-06 |
| Court: | Northern District, CA |
| Allegations: |
A class action has been commenced on behalf of an institutional investor in the United States District Court for the Northern District of California on behalf of purchasers of Connetics Corporation ("Connetics") (NASDAQ:CNCT) common stock during the period between June 28, 2004 and May 3, 2006 (the "Class Period").
The complaint charges Connetics and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Connetics is a specialty pharmaceutical company that engages in the development and commercialization of products for the medical dermatology market.
The complaint alleges that during the Class Period, Connetics made false statements about the Company's most important new drug (Velac) concerning findings that would likely prevent FDA approval. Defendants also reported false financial results by failing to properly reserve for rebates. On May 3, 2006, Connetics announced it could not file its quarterly report on time due to a restatement of its financial results. As a result of defendants' false statements, Connetics' stock traded at inflated levels during the Class Period, which allowed defendants to reap millions of dollars in insider trading proceeds. However, after the May 3, 2006 announcement, the Connetics Corporation shares collapsed 45% from their high. The stock now trades at $10-$11 per share, some 63% below the Class Period high of $29.92.
According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the carcinogenicity study of Velac had indicated that 89 out of 160 mice treated with Velac developed tumors; (b) prior to the Class Period, Connetics had been informed by a panel of toxicology experts that they were unaware of any drug with similar results to Velac ever being approved by the FDA; (c) the Company's new Velac drug would be deemed unsafe by the FDA and would not provide the revenue and income promised by the Company; (d) the Company would not be able to achieve the operating results for 2006-2007 as projected due to its inability to launch Velac; and (e) Connetics Corporation was falsifying its financials for at least 2005 and likely earlier due to improper accounting for rebates.
If you acquired the securities of Connetics Corporation during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint charges Connetics and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Connetics is a specialty pharmaceutical company that engages in the development and commercialization of products for the medical dermatology market.
The complaint alleges that during the Class Period, Connetics made false statements about the Company's most important new drug (Velac) concerning findings that would likely prevent FDA approval. Defendants also reported false financial results by failing to properly reserve for rebates. On May 3, 2006, Connetics announced it could not file its quarterly report on time due to a restatement of its financial results. As a result of defendants' false statements, Connetics' stock traded at inflated levels during the Class Period, which allowed defendants to reap millions of dollars in insider trading proceeds. However, after the May 3, 2006 announcement, the Connetics Corporation shares collapsed 45% from their high. The stock now trades at $10-$11 per share, some 63% below the Class Period high of $29.92.
According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the carcinogenicity study of Velac had indicated that 89 out of 160 mice treated with Velac developed tumors; (b) prior to the Class Period, Connetics had been informed by a panel of toxicology experts that they were unaware of any drug with similar results to Velac ever being approved by the FDA; (c) the Company's new Velac drug would be deemed unsafe by the FDA and would not provide the revenue and income promised by the Company; (d) the Company would not be able to achieve the operating results for 2006-2007 as projected due to its inability to launch Velac; and (e) Connetics Corporation was falsifying its financials for at least 2005 and likely earlier due to improper accounting for rebates.
If you acquired the securities of Connetics Corporation during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
