| Company: | GeoPharma Inc. |
| Ticker Symbol: | NASD: GORX |
| Class Period: | December 1, 2004 to December 2, 2004 |
| Date Filed: | Dec-09-04 |
| Lead Plaintiff Deadline: | Jan-30-05 |
| Court: | Southern District, NY |
| Allegations: |
A class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of GeoPharma Inc. ("GeoPharma") (NASDAQ:GORX) common stock during the period between December 1, 2004 and December 2, 2004 (the "Class Period").
The complaint charges GeoPharma and certain of its officers and directors with violations of the Securities Exchange Act of 1934. GeoPharma manufactures, packages, repackages and distributes a wide array of health-related products. GeoPharma's wholly owned subsidiary, Belcher Pharmaceuticals, manufactures and distributes over-the-counter and generic drugs.
The complaint alleges that during the Class Period, defendants caused GeoPharma's shares to trade at artificially inflated levels through the issuance of a false and misleading press release about FDA approval of Mucotrol, a product in development the Company had previously described publicly as a prescription "drug." On December 1, 2004, prior to the market opening, the Company issued a press release announcing that "Belcher Pharmaceuticals, Inc., a wholly-owned subsidiary of GeoPharma, Inc. has received approval from the United States Food and Drug Administration ("FDA") for Mucotrol(TM), a prescription product for the management of oral mucositis/stomatitis .... It is estimated that approximately 300,000 cancer patients in the U.S. suffer from mucositis associated with cancer treatments. Based on this, the estimated U.S. oncology market potential for Mucotrol(TM) sales are between $75 million and $300 million per annum and the estimated global market is between $250 million and $1 billion per annum."
The Company's stock jumped to $11.25 per share on this news, an increase of 153%. Early in the afternoon, the stock tumbled and was subsequently halted at $6.81 after FDA officials told media outlets that they had no record of Mucotrol. The agency later clarified, saying Mucotrol had been cleared for marketing on November 24th -- not as a drug, but as a device. The FDA had only granted Mucotrol so-called 510(k) marketing clearance because of its substantial similarity to a product already on the market.
On December 2, 2004, after the markets closed, the Company and certain of the individual defendants held an investor conference call to discuss the misstatements and omissions in its December 1, 2004 press release. On the call, GeoPharma's Chief Executive Officer finally made it clear the Mucotrol was a device, not a drug. The day after the conference call, the Company's stock collapsed to as low as $5.37 per share.
If you acquired the securities of the defendants 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 GeoPharma and certain of its officers and directors with violations of the Securities Exchange Act of 1934. GeoPharma manufactures, packages, repackages and distributes a wide array of health-related products. GeoPharma's wholly owned subsidiary, Belcher Pharmaceuticals, manufactures and distributes over-the-counter and generic drugs.
The complaint alleges that during the Class Period, defendants caused GeoPharma's shares to trade at artificially inflated levels through the issuance of a false and misleading press release about FDA approval of Mucotrol, a product in development the Company had previously described publicly as a prescription "drug." On December 1, 2004, prior to the market opening, the Company issued a press release announcing that "Belcher Pharmaceuticals, Inc., a wholly-owned subsidiary of GeoPharma, Inc. has received approval from the United States Food and Drug Administration ("FDA") for Mucotrol(TM), a prescription product for the management of oral mucositis/stomatitis .... It is estimated that approximately 300,000 cancer patients in the U.S. suffer from mucositis associated with cancer treatments. Based on this, the estimated U.S. oncology market potential for Mucotrol(TM) sales are between $75 million and $300 million per annum and the estimated global market is between $250 million and $1 billion per annum."
The Company's stock jumped to $11.25 per share on this news, an increase of 153%. Early in the afternoon, the stock tumbled and was subsequently halted at $6.81 after FDA officials told media outlets that they had no record of Mucotrol. The agency later clarified, saying Mucotrol had been cleared for marketing on November 24th -- not as a drug, but as a device. The FDA had only granted Mucotrol so-called 510(k) marketing clearance because of its substantial similarity to a product already on the market.
On December 2, 2004, after the markets closed, the Company and certain of the individual defendants held an investor conference call to discuss the misstatements and omissions in its December 1, 2004 press release. On the call, GeoPharma's Chief Executive Officer finally made it clear the Mucotrol was a device, not a drug. The day after the conference call, the Company's stock collapsed to as low as $5.37 per share.
If you acquired the securities of the defendants 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.
Register your Case
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
